Crash Course: What Happens If Your Car Is Totaled?

Fender benders happen. No big deal. Usually. But, given the technology that goes into even the smallest parts of your car, and how damage to those technologies can result in system-wide problems, you might be surprised at how relatively easy it is to total your car. Every year, there are about six million car accidents in the U.S. 72% of those accidents result in property damage, some of which may be sufficient to total your car.

Should this happen to you, making this unfortunate experience less painful is possible and depends largely on wise preparation. It’s common for drivers to believe that a car must be a mangled mess to be totaled, but this is not necessarily the case, so it’s important to get familiar with the facts and be as prepared as possible.

How Insurance Companies Determine That Your Car Is Totaled.

Insurance companies make this determination based on the cost of repairs to be made versus the value of the car. If a car body shop or paint shop will need to perform car repairs after an accident, such as body work and cosmetic repairs, that cost more than the car’s overall value, the car is considered totaled. After a serious car accident, getting a car fixed can exceed the car’s resale amount, rendering the car not worth the insurance company’s repair spend. An appraiser will evaluate the damage to make this determination. Older cars are more likely to be categorized as totaled as they tend to have low resale value. In some states, laws dictate when a car is totaled. Ask your collision and paint shop about any such regulations in your area.

Find Your Vehicle’s Title. Your insurance company will want to know whether you still owe a balance on your car’s purchase price. If your vehicle is paid off, your insurer will ask you to produce your car’s title and car loan payoff documentation as proof that you don’t owe anything on the vehicle.

Identify a Body Shop You Can Trust. Your collision and paint shop will be who can tell you how much repairing your car would cost. Given how much is riding on this calculation, going with a shop you have experience with or are referred to by friends or family lets you rest easy that you are getting accurate information to pass along to your insurance company. Your insurance company will often recommend certain body shops for you to visit. However, remember that the choice of body shop is ultimately yours. Legally, you are free to forego use of the body shop your insurance company prefers and go with your own choice.

Once you’ve got all the information and documentation you need, your body shop and insurance company will work with you to determine the fate of your totaled car. A silver lining: you may find yourself in a new ride sooner than you thought!