Updated January 19, 2023 Reviewed by ERIC ESTEVEZ Fact checked by VIKKI VELASQUEZ A car may be considered “totaled” if the cost of fixing it is greater than the car’s actual value.
This could happen if the insurance company decides that it can’t be fixed safely or if it meets other state requirements.
Learn how to identify a totaled vehicle and what to do with a damaged one.
Important Takeaways If the cost of repairing your car after an accident exceeds its value, it may be considered a total loss.
If a vehicle meets the state’s requirements, it may also be deemed totaled.
A totaled vehicle should be covered by the other driver’s property damage liability insurance if they were at fault.
If you’ve purchased that optional coverage, your collision insurance should cover you if you were at fault in an accident.
If you have a loan or a lease, you might be responsible for the difference between what the insurer pays you and how much you still owe.
