How is a car considered totaled?

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After an accident the vehicle involved is basically in the hands of the insurance company. The insurance company will determine how much the car is worth and how much it would cost to fix it.

Appraisal

The appraiser is sent by the insurance company to determine the extent of the damage and the value of the car.

Actual Cash Value

The appraiser figures the actual cash value of the car based on several factors, including how much similar vehicles in the area sell for. The formula for figuring this varies by company.

Repair Cost

Some insurance companies consider a car totaled if the cost for repairs is as little as 51 percent of the actual cash value of the car. Others may figure as high as 80 percent.

Incidental Expenses

Towing, storage, salvage costs and rental expenses can affect what percentage of the actual cash value the repairs can make up. If these incidental expenses are high the company will allow less for repairs.

Total Cost

A car will be considered totaled when the repair cost plus the incidental cost is equal to or greater than the actual cash value of the car.

Source:

Autobodyshopstop.com: When is a Car Totaled

Carfax: Glossary of Terms

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How is a car considered totaled?

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