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

Answered by Car Insurance Expert Jessica on February 22, 2021

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

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Car Insurance Expert

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.

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