Getting into a car accident is stressful. One big question people ask afterward is, “Is my car totaled?” That’s not always easy to answer right away. Sometimes the damage looks bad but is repairable. Other times, even small damage can mean the cost to fix it is more than the car is worth. Here’s how to figure out when a car might be considered totaled and what that means for you.
What Does “Totaled” Mean?
A car is considered “totaled” when the cost to repair it is more than its current value. In most cases, this is decided by your insurance company. They’ll look at how much your car was worth before the crash and compare that to how much it will cost to fix. If the repair costs are too high, they’ll call it a total loss.
In Nevada, insurance companies generally consider a car totaled if repairs cost more than 65% of the car’s actual cash value (ACV). The ACV is what your car was worth before the accident, taking into account its age, mileage, and condition.
Signs Your Car Might Be Totaled
Some signs make it more likely that your car will be declared a total loss. Here are a few common ones:
Severe Structural Damage: If the frame of your car is bent or cracked, fixing it can be very expensive. Damage to the structure can also make your car unsafe, even after repairs. Insurance companies often total a car when it has major frame damage.
Airbags Deployed: Airbags going off during a crash is a clear sign the accident was serious. Replacing airbags can cost thousands of dollars. If multiple airbags are deployed, this alone could make the repair costs too high.
Mechanical Damage: If the crash hurt the engine, transmission, or other major systems, repairs might be very expensive. Even if the car looks okay on the outside, damage under the hood can lead to a total loss decision.
Flood or Fire Damage: Water or fire damage affects many parts of a car at once—wires, electronics, upholstery, and more. This kind of damage is hard to repair fully and often leads to the car being totaled.
Multiple Areas of Body Damage: If your car is hit in several places—like the front, side, and back—the cost of fixing all of it can quickly add up. Even smaller dings and dents in multiple places can make repairs more expensive than the car is worth.
Older Car with High Mileage: Even if the damage isn’t that bad, an older car with lots of miles may not be worth much. A repair that costs a few thousand dollars might be more than the car’s total value. In those cases, insurers usually decide to total the vehicle.
How Insurance Companies Decide
Insurance adjusters look at the car’s pre-accident value (ACV) and compare it to estimated repair costs. If the cost to repair is close to or more than 65% of the ACV in Nevada, they will most likely declare it a total loss. They may also include things like rental car costs and potential hidden damage in their decision.
For example, if your car is worth $10,000 and repairs are estimated at $7,000, the car might be totaled because the cost is 70% of the value. Even if you think the car is fixable, the insurance company might still call it a loss based on their numbers.
What Happens If Your Car Is Totaled?
Once the insurance company decides your car is totaled, they’ll offer you a payout. This payout is usually based on your car’s ACV, not what you paid for it or what you still owe on it. If you agree with the offer, they’ll take the car and send you a check. You can use that money toward a new or used car.
If you still owe money on a loan or lease, that will be paid first from the insurance money. If the payout doesn’t cover everything you owe, you may be stuck paying the rest out of pocket—unless you have gap insurance.
You might also have the option to keep the car, but that means taking a smaller payout and getting a “salvage” title. Cars with salvage titles are harder to insure and sell, and you’d be responsible for repairs and safety checks.
What to Do If You Think Your Car Is Totaled
If you think your car might be totaled, here are a few steps to take:
- Take photos of the damage right away
- Keep all repair estimates and damage reports
- Talk to your insurance company and ask how they calculate ACV
- Consider getting your own estimate if you don’t agree with theirs
You don’t have to accept the first offer they give you. If you think the value they offer is too low, you can negotiate. Show them listings of similar cars in your area or provide service records that show your car was in good condition.
Need Help After a Serious Accident?
Dealing with a totaled car can be hard enough. But if you were hurt in the accident too, you may also be facing medical bills, missed work, and stress. That’s where we can help.
Friedman Injury Law helps people in Henderson and the Las Vegas area who’ve been injured in crashes. If you’re not sure whether your car is totaled or how to deal with the insurance company, give us a call. We’ll look at your case and explain your options. You don’t pay us unless we win your case.
Call (702) 970-4222 today for a free consultation. Let’s talk about how we can help you move forward.
