What’s important to note is even if the repair cost is less than the ACV, it may not make sense to repair the car. We know this can be a confusing time for drivers, especially when you’ve probably heard about vehicles being totaled when they still have value. For example, if your car is worth $10,000 and the repair estimate is $7,000, your insurance company will total the car even though the repair costs less than the replacement. Below, we breakdown how your car is considered a total loss:Ī car with typically gets totaled when the repair cost is 70% or higher than the Actual Cash Value (aka ACV) of the car. Hearing from an auto body shop that your car is a total loss feels like the worst news you can receive.īelieve it not, there’s actually a positive side to your car being totaled and we’re here to discuss that. You have to deal with the pressure from your insurance company and their claims to possible injuries. Either way, what comes after the accident is almost worse than the accident itself.

In fact, they might even have negative equity, making the situation worse than what it is. When people are facing the potential of their car being totaled, they might still owe money on the car. In the collision repair industry, a totaled car is referred to as a “total loss,” meaning that the car is unable to be repaired.

Nobody plans on getting in an accident or thinks as they drive their car, “this is the last day I’ll be driving this thing.” Let’s face it: the only thing worse than getting in a car accident is when your car is totaled as a result of that accident.

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