If your car is so damaged that it is not drivable or roadworthy, or if the cost of repairs are more than its value, it will be declared a total loss by your insurance company (if you have collision coverage) or by the other driver’s insurance company (if they admit liability). In this situation, they will pay the fair market value of your car. Fair market value is essentially the value that you could get by selling the pre-collision car. Some useful ways to determine fair market value are Kelley Blue Book, the Nada Guides, or any offers of purchase you had near the time of the collision, whether from an individual buyer or a company like Carmax. Let your attorney know if your car had any major work done recently — for example, or a new engine – as this might increase its value. You might face one or two major problems when your vehicle is declared a total loss: You owe more on your car than it is worth. If you are still making payments on your car, but the value is less than your remaining payments, you may have to continue making payments for a car that you no longer own. One solution is to purchase gap insurance, either from the leasing company or from your automobile insurance company. Gap insurance will pay the difference between the value of your car and the total remaining payments. Unfortunately, if you do not have gap insurance, you will be on the hook for the remaining payments. You had a reliable older car. If your car was a reliable source of transportation, but had a low fair market value, you may not be able to purchase an equivalent and satisfactory replacement car with the money you receive from the insurance company for totaling out your car. Unfortunately, there is no way to recover replacement value of a beloved older car. If your car is in a collision and damaged, its value will typically be lower even if that damage is repaired. In some circumstances your lawyer may be able to pursue a diminished value claim for your car. Typically, your pre-collision car must be only one or two years old and in good condition. These claims often require expert testimony in court.