Is mileage a factor when insurance companies decide whether a car is totaled?

How do car insurance companies decide whether a car is totaled or just needs repair? Does the number of miles on the car matter?

Answer
Thanks for the question!
Yes, mileage is a factor.
When insurers are trying to determine your car’s actual cash value, they take mileage into account.
They then calculate whether the car is totaled by determining if the cost of the repairs plus the salvage value (how much the car can be sold for in its totaled state) is greater than the car’s actual cash value.
If this is the case, then the car is declared totaled.
As you work with your insurance company to determine the outcome of your vehicle’s damage, you should also be aware that you will likely see an increase in your rates after an accident. If the rates are too high, try using Jerry to help you build a relationship with a new insurance company. Jerry compares rates from the top 50 providers and delivers the best deals to your phone in minutes.
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Jessica Bartolucci
Answered on Aug 06, 2021
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