{"id":714,"date":"2022-12-26T19:43:00","date_gmt":"2022-12-26T19:43:00","guid":{"rendered":"https:\/\/www.freeway.com\/knowledge-center\/?p=714"},"modified":"2025-12-24T15:31:32","modified_gmt":"2025-12-24T15:31:32","slug":"is-your-car-a-total-loss","status":"publish","type":"post","link":"https:\/\/www.freeway.com\/knowledge-center\/auto\/auto-insurance-claims\/is-your-car-a-total-loss\/","title":{"rendered":"Is Your Car a \u201cTotal Loss\u201d?"},"content":{"rendered":"

It can be frustrating to hear that your car is a total loss for many sentimental and personal reasons, as well as financial ones. So, what do you do when you have a totaled car?\u00a0\u00a0<\/span><\/p>\n

Though total loss accidents can be very stressful, the most important thing in the aftermath of every accident is making sure that you\u2019re okay. Then, you can work with your insurance agent to determine your vehicle\u2019s salvage value and next steps.\u00a0<\/span><\/p>\n

Although it can be discouraging news, if you\u2019ve gotten into a car accident and your <\/span>auto insurance<\/span><\/a> company tells you you have a totaled vehicle, there is always a good reason.\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <\/span><\/p>\n

Why is My Vehicle A Total Loss?<\/span><\/h2>\n

The damaged car can\u2019t be guaranteed safe for repairs. Despite replacing external and internal parts affected by the incident, there might be further issues with the vehicle that would make it unsafe to operate even with the parts repaired. Sometimes, the damage is too severe to safely repair the vehicle even if it\u2019s newer and valuable with the accident situation removed. Your health and safety come first so if your car is deemed to be past the total loss threshold, it\u2019s better to accept the news than fight it.\u00a0<\/span><\/p>\n

This news can be more difficult. If the required repairs exceed a certain percentage of the car\u2019s actual cash value, it might not be worth it to proceed with repairs. Normal wear and tear on vehicles will lead to annual or bi-annual repairs. As your car depreciates in value, it\u2019s important to consider whether you\u2019re pouring money into a car that isn\u2019t going to be functional in the next few years.\u00a0<\/span><\/p>\n

By certain state regulations, severely damaged vehicles must be declared a total loss. At this point, it\u2019s out of your control. Many mechanics are under the jurisdiction of the Department of Motor Vehicles (DMV) in their respective state. If a vehicle cannot be repaired your local state law will make the final call, not you.\u00a0<\/span><\/p>\n

How is the Value of My Vehicle Calculated?<\/span><\/h2>\n

The actual cash value vs what your insurer will likely pay you is calculated against your deductible. For example, if your Dodge Neon is worth only $2,000 and your deductible is $450, you won\u2019t be receiving the full $2,000 compensation for your vehicle\u2019s actual value. If you\u2019re curious about the fair market value of your motor vehicle or need to have an estimate for yourself, looking at similar cars in the <\/span>Kelley Blue Book<\/span><\/a> can help approximate what you might expect. However, the number it returns is not a guarantee and is more of a range.\u00a0<\/span><\/p>\n

What Do Mechanics Factor In?<\/span><\/h2>\n

The point of a total loss insurance claim is to provide you, the owner, with the <\/span>cost of replacing your current vehicle<\/span><\/a>. Your car\u2019s ACV is approximated by your own insurance company by comparing other vehicles of the same make and model, and also the condition of the car before the auto accident.\u00a0<\/span><\/p>\n