The short version
- A total loss means the repair is judged to cost more than the vehicle’s value.
- The payment is based on the vehicle’s value just before the loss.
- You can ask how the value was calculated and question it.
How the decision is made
Each state has rules on how a vehicle is judged to be a total loss, and they differ. The insurer compares repair cost, the car’s value and sometimes the salvage value.
What the value looks at
- Make, model, year and trim.
- Mileage and condition.
- Sales of similar vehicles nearby.
- Options and recent upgrades.
If there is a loan
When a lender is listed on the policy, payment is generally made to the lender first. Ask the insurer and lender how the balance will be handled.
Keep your own evidence
Maintenance records, photos and receipts for new tires or parts can help support a higher valuation. Ask the adjuster what documents they accept.
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