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When is a Car Considered Totaled?

In the event of a serious auto accident, individuals involved may have to deal with physical pain, property damage, and temporary or permanent loss of their vehicle. If a car sustains extensive damage, the insurance company appraiser may declare that it is too costly to repair and may determine that the car is “totaled”.

In the event that a car is considered totaled by the insurance company, the individual may be issued payment for the value of the car before the accident occurred. This may allow the person to purchase a new vehicle and move on from the accident. Collisions and accidents can occur at any time, so it is important to have adequate insurance coverage for all vehicles and drivers. If you are looking to insure a car, truck, or motorcycle in the Chicagoland area, contact the experienced insurance agents of Insure on the Spot at 773-202-5060.

Totaled Vehicle Determination

Although there is not a single universal formula for determining if a car may be repaired or not, insurance companies may declare a car totaled if:

  • The car is inoperable and cannot be restored to working condition
  • If the car has been severely burned by fire or completely submerged in water for an extensive amount of time
  • If the frame of the car has been seriously damaged or compromised during the collision
  • If the market value of the car does not match the cost of repairing the vehicle
  • The cost of repairs is 51-80% of the car's actual cash value (ACV)

The final decision ultimately rests with the insurance company. The appraiser will examine the extent of the damage to the vehicle and will consider the cost of repairing versus replacing the car, truck, or motorcycle involved in the wreck. In some cases, drivers can claim their totaled vehicle and attempt to fix it themselves, but oftentimes the totaled vehicle will be sold at auction for parts and the driver will receive compensation from his or her insurance company.

Contact Us

Contact the Chicago car insurance agents of Insure on the Spot at 773-202-5060 today for a free, no-obligation, no-hassle insurance quote.