If an auto mechanic estimates that the price to repair the vehicle after a crash exceeds the total value of the vehicle itself, it will be deemed a total loss (“totaled”). This means that the vehicle is not worth enough to warrant paying the price of repairs. With a total loss, an insurance company will not pay to repair the vehicle. Instead, it will offer an amount that is reasonable for the pre-crash value of the vehicle; how much your motor vehicle would have been able to sell for prior to the accident.
Even if repair costs are higher than half the value of your vehicle, it might make more financial sense to replace the vehicle – especially if it is an older car. If your vehicle is totaled, it is your decision whether to keep the car as-is, pay for repairs yourself or sell it to a scrapyard. If it does not make financial sense to repair an older vehicle or one that has suffered extensive damage, it may be time to purchase a new vehicle. You can do this using your insurance benefits, if applicable.