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How do insurance companies decide if a car is totaled?

I got into an accident, but my car didn't look heavily damaged. To my surprise, the insurance company decided the vehicle was totaled. I've accepted it, and I'm currently shopping for a new vehicle—but how do insurance companies decide if a car is totaled?

avatar
Phoebe Mah · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“I’m sorry to hear about your accident—and you ask a good question. To determine whether a car is totaled, your
car insurance
will add the cost of repairs plus the salvage value of the vehicle and compare it to the actual cash value (ACV) of the car.
If the total of the repairs and salvage value is more than the actual cash value, the insurer will decide the car is totaled.
If you want to
keep the totaled car
, the insurance company will deduct the amount from your total payout.
Something to keep in mind—if your new vehicle has a higher ACV than the old one, your insurance might charge you a higher premium. If you want to make sure you’re getting the best deal for the coverage you need, try comparing your rates with other companies’ rates using the
Jerry
app. We’ll get you personalized quotes from top-of-the-line providers so that you can make sure you’re getting the best deal on the coverage you need. And if you want to switch plans or providers, we can help with that too!
Good luck with your vehicle shopping and drive safely!”
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

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