Totaled (Total Loss)

What is totaled (total loss)?

A vehicle is ‘totaled’ when repair costs exceed the vehicle’s actual cash value — or, in some states, when they exceed a regulatory threshold (often 70-80% of value). The insurer pays you the ACV minus your deductible instead of repairing.

Details

Total loss determinations depend on the carrier’s repair estimate, the vehicle’s ACV, and state law. You can sometimes negotiate the ACV by submitting comparable sale listings. If you have gap insurance on a financed vehicle, it pays the difference between ACV and your loan balance.