When Will Car Insurance Total A Car?

  1. 7647 POINTS
    Mark Bartlett CLCS
    Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers
    The simple answer is if the amount to repair your vehicle exceeds the market value of the vehicle then the vehicle will be considered a total. For example: If your vehicle has a market value of $5,000.00 and the damages are $5,500.00 the vehicle will be a total. If the same vehicle suffers damages of $4,500.00 the vehicle will be repaired. However if the damages get to close to the value of the vehicle the insurance company may elect to total the vehicle as there may be ongoing issues that can cost the insurance company more money. The insurance company will chose the option that costs the insurance company the least amount of money. Of course safety to the consumer is always an important consideration as well. I have seen vehicles with very low market values become totaled for a minor fender bender and I have seen expensive vehicles suffer major damage and still end up being repaired. If the damages can be fixed properly for a lower cost then totaling the vehicle, then this option is almost always the first option. Insureds will have very little say so in choosing to total their own vehicle as how damages are handled are written in the contract.
    Answered on August 2, 2013
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  2. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    A general guide is when the estimated cost to repair is proportionally greater than the relative value of your car, it is likely that the insurance company will determine the car to be a total loss. Take a look at a valuation source like Kelly Blue Book or NADA for example and determine the value of your car. If the repair cost meets or exceeds 70% of that figure, as a practical guideline, the car would probably be totalled.
    Answered on November 20, 2014
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