When Is A Car Considered Totaled?

This post is part of a sponsored automotive series. All opinions are mine.

It’s something you never want to think about, but unfortunately it’s something that happens. Whether your vehicle is in an accident or act of nature, there are times they just can’t be brought back from the grave. In this case, a vehicle is considered totaled.

“The actual diagnosis of your vehicle being totaled depends on the state you live in and your auto insurance company.” Explained the pros at this Conneticut Chrysler dealer.

Let’s take a look at how it is typically determined whether or not a vehicle is totaled.

Threshold Percentages

Some states look at a certain threshold percentage when declaring a vehicle as totaled. CarInsurance.com has a great chart for each of the states that use threshold percentages and shows how each varies with their declaration. You’ll notice that Iowa has one of the lowest percentages (at 50%) while at the same time, Texas holds their threshold percentage at a whopping 100%.

The Total Loss Formula (or TLF)

There are 21 states that use the TLF to determine if a vehicle is totaled or not. Ultimately it comes down to the car insurance company deciding whether the cost of repair – plus the scrap value – is greater than the actual cash value of your vehicle (based on it’s condition before the incident). If the repairs and scrap value is in fact greater, the vehicle is considered totaled.

To see how your state compares, you can view the Carfax website where they breakdown each state and what their policy is.

When The Vehicle is Unsafe

A vehicle may also be considered totaled if your state’s laws might deem it unsafe even if it were to be fixed. For example, in Oklahoma, if a vehicle’s damage total exceeds 60% of it’s value, then it is considered totaled.

It can be tough dealing with the repercussions of being in an accident, and even confusing when you look at all the different regulations from state to state. However, your car insurance should be able to help guide you in the right direction and they will typically let you know how and why a decision to total a vehicle has been made.

In any case, make sure you ask about if you are allotted a rental vehicle while you shop for a new car, along with any other details that might be helpful when trying to start fresh. It can be helpful to collect all this information right up front and know what is in store for you in the near future.