When Is a Car Considered Totalled?

After a collision, your vehicle may have sustained damage, but you might not be sure if your insurer will deem the car a total loss. In this situation, it’s not uncommon to have some questions, chief among them: “When is a car considered totalled?” To help you determine how to tell if a car is totalled, as well as what to do when a car is totalled, Pfaff Autoworks offers the following insights so you can navigate this situation with confidence.

How To Tell If a Car Is Totalled

So, exactly when is a car considered totalled? In most cases, an insurance company will declare a vehicle a total loss when the cost to repair it is more than its actual cash value or over a defined percentage of that value. Insurers and individual provinces know how to tell if a car is totalled by basing the determination on the threshold percentages of value they’ve established. Although these percentages differ by both insurance provider and province, they usually range between 70% and 90% of the vehicle’s value before the collision.

What To Do When a Car Is Totalled

Say you’ve just been involved in an accident in Richmond Hill. This is the claims process that your insurer will likely have you follow:

• File a claim with your insurance company.
• Obtain a repair estimate.
• Calculate your vehicle’s actual cash value at the time of the accident, less its salvage value.
• Wait to hear if your insurer will declare your vehicle a total loss or if they will recommend repairs instead.

Now that you know how to tell if a car is totalled, let’s take a look at what happens once this decision is made. After your insurer has called your vehicle a total loss, they will usually make you a settlement offer based on the cash value of your vehicle in the local market. Here’s what to do when a car is totalled and after you’ve accepted the settlement:

• Expect a salvage title or irreparable title to be issued, depending on the severity of the damage and any provincial regulations.
• Allow your insurer to take ownership of the vehicle.
• Replace your vehicle using the settlement money you’ve received.

Trust Us for Collision Repair Near Unionville

With a better understanding of when a car is considered totalled, you can decide if repairs are the next best step. We’re here to help. Contact us or request a quote online today. We look forward to the opportunity to restore your vehicle to full functionality for all your drives in Markham, Vaughan, and beyond.