After an accident occurs, the extent of the damage has to be evaluated. This is part of the claims process. During the evaluation we determine how much the vehicle will cost to replace. We also want to ensure that it can be repaired to a safe, working condition. If it is cost-effective to do this, then we can move forward with the claim and pay for the damages. If the repairs cost more than the value of the car, then the vehicle is considered a total loss.