How Do I Know If My Car Is Worth Repairing or Should Be Totaled?
Learn how to assess repair costs, insurance payouts, and vehicle value to decide if fixing your car is worth it or if it should be declared a total loss.
Nature's Symphony
When you're in an accident, one of the first questions you’ll face is whether your car is worth fixing or if it should be considered a total loss. Insurance companies have their own way of making this decision, but as a vehicle owner, understanding the process can help you make the best choice for your situation.
In this blog, we’ll break down how insurance companies determine a total loss, what factors to consider before repairing your vehicle, and how to ensure you get fair compensation if your car is totaled.
What Does It Mean When a Car Is Totaled?
A car is considered a total loss when the cost to repair it exceeds its actual cash value (ACV) or a certain percentage of its value, which varies by state and insurance provider.
For example, if your car is worth $10,000 and the repair costs add up to $8,000, your insurance company may declare it a total loss instead of paying for repairs. Most insurers use a Total Loss Threshold (TLT) or Total Loss Formula (TLF) to determine this.
Here’s how insurers typically make their decision:
How to Determine If Your Car Is Worth Fixing
If your car has been in an accident, consider the following key factors before deciding whether to repair or total it:
The Cost of Repairs vs. Car’s Value
- Get a detailed repair estimate from a trusted shop.
- Compare the repair costs to your car’s actual cash value.
- If repairs cost more than 50-70% of the car's value, it may not be worth fixing.
Safety and Structural Damage
- If your car has frame damage, repairs may not restore it to its original condition.
- Vehicles with airbag deployment often cost more to repair and could be considered a total loss.
- Mechanical damage beyond cosmetic repairs can be costly and unreliable in the long run.
Insurance Payout vs. Out-of-Pocket Costs
- If your insurance offers a fair market value payout, it may be more cost-effective to replace the car.
- Consider deductibles and whether you’d still need to cover some repair costs.
Age and Mileage of the Vehicle
- Older cars with high mileage typically have lower resale value, making them more likely to be totaled.
- If your vehicle is new or has sentimental value, you may prefer to repair it.
Future Reliability and Resale Value
- Even after repairs, a history of major accidents can decrease a car’s value.
- If diminished value is a concern, consider whether it’s worth investing in repairs.
What to Do If Your Car Is Totaled?
If your car is declared a total loss, here’s what you should do next:
- Review the Insurance Offer – Compare their payout with your car’s market value using resources like Kelley Blue Book or Edmunds.
- Negotiate If Needed – If you believe your car is worth more, provide maintenance records, recent upgrades, or competing offers to support your case.
- Consider Keeping the Vehicle – Some states allow you to buy back the car from the insurer and repair it yourself.
- Check for Diminished Value Claims – If your car is repaired, you may be entitled to compensation for loss of resale value.
✔ Accurate repair estimates
✔ Insurance claim support
✔ Total loss negotiation help
✔ Diminished value reports
Call us at 480-300-5034 or fill out our contact form for expert guidance on getting the best outcome after an accident.
