How Do Insurance Companies Decide To Total A Car

Insurance company does not have to "total" a vehicle if the costs of the repairs exceed 80% of ACV. The statute doesn't require it, but most companies used it as a rule of thumb.

You can ask your insurance company to total your car if the repair costs exceed 50% of the car's actual cash value (ACV). Ultimately, you can tell the insurance company to total your car, but the insurance company gets to decide if it is a total loss.

Sometimes, insurance companies use a percentage of the value of the car as its basis. This will vary from company to company. Some insurance companies may decide to total the car when the cost of the repairs reaches 51% of the car's fair market value.

An insurance company determines the value of a totaled car by evaluating how much it costs to repair the car versus the amount the insurance company must pay if it declares the car a total loss. Each insurance company calculates a totaled car's value differently, according to AutoTrader.com.