When Is a Damaged Vehicle Considered Totaled?

Some damage is so extensive that it is too costly to repair.

Safety and cost of repair are major factors determining whether a vehicle is a total loss. Vehicles can be totaled under the law of the state or designated as a total loss by the insurance company under the terms of its policies according to the Bureau of Justice Assistance.

Safe Repair

A fender bender on the outside can involve frame damage on the inside that cannot be repaired in a cost effective manner. A vehicle with damage so severe that it can't be repaired safely, can be considered a total loss.

Repair Expense

Repair costs add up.

The car is totaled if the insurer determines that repairs will be more expensive than the replacement value of the vehicle as decided by the age, condition and damage to the car before the accident.

State Regulations

State regulations may require a vehicle to be considered a total loss dependent on the nature of the damage and the severity. Check with your insurance carrier for specifics to your state or visit the DMV.org site for a state-by-state list.

References

• National Motor Vehicle Title Information System
• Bureau of Justice Assistance: Policy Clarification Regarding Insurance Carrier Reporting of Salvage Information

Resources

• DMV.org: State Requirements