by 
The Curious Bag
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Most insurance companies will declare a vehicle a total loss when the cost of repairs are more than the car is worth or the vehicle is so damaged that it can't be safely repaired, according to Geico.com and other insurers' websites.
Calculating Value
The insurance company will determine the value of your car by looking at the price of similar vehicles and taking into account your car's pre-accident mileage and condition, according to Geico.com
Payment
When your car is declared a total loss, the insurance company will pay you the value of your car minus any deductibles, according to Progressive.com.
Loans and Leases
You can still owe money on a totaled car. According to Progressive.com, this happens when your car's pre-accident value is determined to be less than the amount you owe.
Salvage
Once you've been paid the value of your car, the insurance company will often take ownership of it and sell it to a salvage dealer, according to Geico.com
Disagreements
If the insurance company determines that your car is a total loss and you disagree, you can get an independent appraisal at your own expense, according to carinsurance.com.
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