Each time you set up or renew an auto insurance policy, your insurance carrier will estimate the total worth of the vehicle.
When your vehicle has been in an accident, the insurers will call in experts to assess the vehicle and offer an estimate for the cost of repairs.
If the cost of repairs exceeds the worth of the vehicle, it will be declared a total loss. Instead of repairs, you will receive a sum equal to the vehicle's last valuation when a total loss is declared.