Repair or total loss: how the decision is made
After a serious accident the insurer either pays for the repair or declares the car a total loss. The decision is about numbers, and you have more say in it than most drivers think.
Magic Auto Center team
How the insurer decides
The insurer compares two figures: what the repair costs, and what the car was worth just before the accident minus what the wreck can be sold for (its salvage value). When the repair costs more, the car is a total loss. This is why an older car can be totaled by damage that would be a routine repair on a newer one.
What you are paid
For a total loss the insurer pays the actual cash value of the car: the market price of a comparable vehicle in your area just before the accident, plus applicable sales tax and fees, minus your deductible if you claim on your own policy. If you have a loan, the lender is paid first.
If you think the valuation is too low
- Ask the adjuster for the valuation report and the comparable vehicles used
- Check that trim level, options, mileage and condition match your car
- Send your own comparable listings and receipts for recent major work
- Ask for a re-evaluation in writing
Keeping a totaled car
You can usually keep the car. The insurer deducts the salvage value from the payout, and the car gets a salvage title. It then has to be repaired and inspected before it can be registered again.
How a shop helps
A detailed repair estimate after teardown shows the real repair cost. Sometimes that confirms the car is repairable, and sometimes it shows that a total loss is the safer result. We give you the estimate and explain both outcomes so you can talk to the adjuster with real numbers.
Photo estimate in 3 steps
Photos, vehicle, phone. We reply during business hours, usually within 1-2 hours.
- Free and no obligation
- Works for insurance claims and for paying yourself
- The final estimate is confirmed after we see the car