When Is a Car Totaled? How Insurance Decides and What That Means for You
It’s one of the most common, and confusing, questions after an accident: “Is my car totaled?”
You see the damage, call your insurance company, and before you know it, you’re hearing terms like total loss, ACV, and salvage title. But what do they really mean? And do you have any say in the decision?r it is, the way you tell your story online can make all the difference.
At Elevated Auto Body, we help customers navigate this process every day. Here’s what really happens behind the scenes when an insurance company decides whether your vehicle is repairable, or not.
1. What “Totaled” Actually Means
A car is considered totaled when the cost to repair it exceeds a certain percentage of its Actual Cash Value (ACV), what it’s worth right before the accident.
Every state, and every insurance company, has its own threshold.
In many states, if repair costs hit 70–80% of the car’s ACV, it’s declared a total loss.
Some use a total loss formula, adding the repair estimate plus the salvage value, and comparing that to the car’s pre-accident value.
For example:
If your car’s ACV is $10,000 and repairs will cost $7,800, your insurer may call it totaled, even if it could technically be repaired.
2. How Insurance Companies Calculate Value
Insurance companies use several factors to calculate your vehicle’s ACV:
Make, model, and year
Mileage and overall condition before the accident
Local market value for similar vehicles
Options and features (like premium packages or recent upgrades)
It’s not uncommon for their estimate to come in lower than expected, which is where documentation and negotiation come in.
3. What You Can Do If You Disagree
You’re not powerless in the process.
If you believe your car is worth more than the insurer’s estimate, you can:
Provide recent maintenance records, receipts, or upgrades (like new tires or a stereo system).
Gather comparable listings in your area for similar vehicles in similar condition.
Request a re-evaluation or independent appraisal.
Elevated Auto Body often helps customers navigate this step, providing professional estimates and repair assessments that show what’s actually possible.
4. What Happens If It’s Declared a Total Loss
If your vehicle is officially declared totaled, you’ll typically receive a payout for its ACV, minus your deductible. You then have two main options:
Accept the payout and sign over the title.
The insurer takes the car, sells it for salvage, and you can use your payout toward a replacement.Keep the vehicle.
If you decide to keep the car, it’s usually issued a salvage title. You’ll receive a reduced payout (because you’re keeping the salvage value), and the car can only be legally driven again after repairs and a state inspection to obtain a rebuilt title.
5. How to Get the Best Outcome
Getting a fair result comes down to being informed and proactive.
Know your car’s market value before a claim ever happens.
Keep receipts for maintenance and upgrades.
Don’t hesitate to question or negotiate the insurer’s first offer.
Choose a trusted shop like Elevated Auto Body for repair assessments — we work directly with adjusters and advocate for what’s best for you.
6. The Elevated Approach
At Elevated Auto Body, we’ve seen every kind of insurance scenario, from borderline totals to full rebuilds. Our team works with your adjuster to ensure accurate estimates, honest assessments, and fair results.
We know your car isn’t just transportation, it’s freedom, reliability, and peace of mind. That’s why we treat every situation like it’s our own.
Whether your vehicle is repairable or declared a total loss, we’ll help you understand your options clearly, and make sure you feel confident in every decision.
