Why total a car

If the cost of repairs is less than the value of your car, your vehicle will likely not be declared a total loss. Have more questions about car insurance coverages or a totaled vehicle? Talk to a local agent. Retrieve a saved quote. Skip to main content Explore Allstate. Popular Searches. Allstate We help customers realize their hopes and dreams by providing the best products and services to protect them from life's uncertainties and prepare them for the future.

Skip to main content Toggle navigation Log in. Edit location. Select a product to get a quote. Register new account Pay your bill. Get your ID cards. Updated: May A car is generally considered totaled when the cost to repair the car exceeds the value of the car. In other cases, the insurer determines whether a vehicle is considered a total loss. Quality Auto Coverage Starts Here. Get a quote Find an agent. If you're involved in a car accident, there are a few basic steps to follow before and after your vehicle is considered totaled: Contact your agent and initiate an insurance claim.

Your insurer will determine whether the vehicle is a total loss, based on repair costs. Your insurer will issue payment for the actual cash value of the totaled vehicle, minus your deductible on your comprehensive or collision coverage. Rental Reimbursement Coverage. This content is for informational purposes only and may not be applicable to all situations. When your insurance company deems that the cost of repairing your car after an accident is more expensive than it is to replace the car.

Your insurance company will refuse to repair the car but will instead give you money that matches the actual worth of your car. This money can then be used for you to buy a replacement vehicle. While KBB is a guideline, it is a good indicator of whether you can expect your insurance company to cover the cost of repairs or give you money to replace your car. And even if the repairs are doable, if they cost more than what the car costs, the insurance company will declare it totaled.

Just like the age of your car is a factor, so is the number of miles on the car. This matters after a car accident because it can require more work when making your insurance claim. If a car accident left your car destroyed, you need to first contact your insurance provider to start a claim.

Then, your insurance agent will determine if the vehicle is a total loss based on the repair appraisal. If the car is considered totaled , your insurance provider will issue a payment for the actual cash value of your destroyed vehicle, minus your collision insurance deductible. A car does not need to appear completely obliterated to be totaled.

Sometimes, the damage is not even clear from the outside. To know for sure, an insurance claims adjuster will inspect your car and assess the damage. According to Georgia Code, if the insurance company determines your car is a total loss, they can:. Under this method, the insurer can replace your totaled car. They must also consider licensing fees, taxes, and other costs associated with ownership.

The replacement car must also be:. The insurance claim will include a complete description of the replacement vehicle. If for some reason, a car meeting the above requirements is not available, the insurer will resort to the cash equivalent method. This cost is calculated based on the condition of your vehicle before the accident.