Alpert Schreyer Personal Injury Lawyers | May 2, 2025 | Car Accident
If you’ve recently been in an accident and heard the insurance company say your vehicle was totaled, you might be wondering what that really means. The word gets thrown around a lot, but understanding what it means when a car is totaled is important, especially when dealing with claims and figuring out what happens next.
In this blog, we’ll explain what it means when a car is totaled, how insurance companies make that decision, and what your options might be if your car was totaled after an accident. Whether you’re dealing with a totaled vehicle value or trying to understand what your insurer will cover, this guide can help.
What Is a Totaled Car?
A totaled car—also called a total loss—is a vehicle that is too damaged to repair cost-effectively. This doesn’t necessarily mean the car is beyond repair. Instead, it means that the cost to fix the damage is higher than the car’s current market value.
So, what does it mean when a car is totaled? In simple terms, your insurance company believes it would cost more to repair the car than it’s worth. This is where the totaled car definition comes into play: the vehicle is considered not worth fixing from a financial standpoint.
To get a better understanding of how these decisions are made, you can explore general insurance claim resources or browse topics related to property damage and car accident law.
What Determines if a Car Is Totaled?
Insurance companies look at several factors when deciding if a car is totaled:
- Repair cost vs. vehicle value: If repair costs exceed a certain percentage (usually 70–80%) of the car’s value, it’s considered totaled.
- State laws: Some states have specific thresholds that must be met before a vehicle is declared a total loss.
- Vehicle’s pre-accident market value: This is how much the car was worth before the accident.
Each insurer may have different guidelines, but these are the core factors. If you’re unsure how your insurer made the decision, reviewing legal content about vehicle damage assessment can provide more clarity.
What Happens When a Car Is Totaled?
Once your car is totaled, your insurance company will usually do the following:
- Assess the car’s value based on its condition before the crash
- Subtract your deductible from the payout amount
- Issue a payment to you or your lender (if you have a loan)
If your car is leased or financed, the insurance check may go directly to the lender. You may still be responsible for paying the difference if you owe more than the car is worth. Understanding the role of gap insurance can help you know what to expect.
For more on how payouts work and what happens when a car is totaled, it’s helpful to read content about insurance claims and accident settlements.
What if You Disagree With the Insurance Value?
If you believe the insurer is undervaluing your totaled car, you have the right to challenge their decision.
You can:
- Provide your own estimates of the car’s value
- Submit recent repairs and maintenance records
- Show comparable car listings in your area
Having solid documentation can make a big difference. Legal resources about disputing insurance payouts and totaled vehicle value negotiations can guide you through the process.
Can You Keep Your Totaled Car?
Yes, in many cases, you can keep your totaled car, but the insurance company will reduce your payout by the car’s salvage value. After that, you’ll be responsible for repairs and must meet your state’s requirements for registering a salvage or rebuilt vehicle. If you’re considering this option, it’s important to read more about salvage title rules and vehicle restoration regulations in your state.
What Makes a Vehicle Totaled—and Why It Matters
When it comes to what makes a vehicle totaled, the focus is mostly on economics, not just damage. Even a car that looks fixable might be labeled a total loss if the repair costs are too high. This is why understanding the term totaled car meaning is so important, especially if you’re depending on your vehicle for daily life.
Learning more about your rights after an accident, reviewing examples of property damage claims, or browsing helpful FAQs can give you a better idea of what to do next.
What It Means When a Car Is Totaled
Being told your car is totaled can feel overwhelming, especially if you rely on it every day. But knowing what the term means, how insurers calculate the value, and what your next steps are can help you take control of the situation. For more guidance, explore helpful legal content related to auto accident claims, insurance settlements, and vehicle valuation issues to make sure you’re prepared if your car gets totaled.
Contact the Car Accident Lawyers at Alpert Schreyer Personal Injury Lawyers in Maryland for Help Today
For more information, please contact Alpert Schreyer Personal Injury Lawyers to schedule a confidential consultation with a car accident lawyer. Our team is available to assist clients in Lanham, Frederick, Rockville, Waldorf, Maryland.
We proudly serve Charles County, Prince George County its surrounding areas. Visit our law offices at:
Alpert Schreyer Personal Injury Lawyers Waldorf
8 Post Office Rd Waldorf, MD 20602
(301) 932-9997
Available 24/7
Alpert Schreyer Personal Injury Lawyers Lanham
4600 Forbes Blvd Ste #200 Lanham, MD 20706
(301) 936-0011
Available 24/7