Alex Mayfield | January 5, 2026 | Car Accidents
After a serious car crash, an insurance company may use the phrase “totaled vehicle.” Many drivers are left wondering what that actually means and what happens next.
In simple terms, a car is typically considered totaled when the cost of repairing it exceeds its value. This does not always mean the car is completely destroyed or unsafe to drive. Understanding how insurers make this decision can help you avoid surprises and make informed choices.
How Insurance Companies Decide a Car Is Totaled
Insurance companies use a cost comparison to decide whether a vehicle is totaled. They look at the cost of repairs and compare it to the car’s actual cash value before the crash.
In Georgia, insurers commonly declare a total loss when repair costs exceed a high percentage of the vehicle’s pre-crash value (typically around 75%) or when repairs are deemed uneconomical under the insurer’s valuation method. While insurers use slightly different formulas, the basic idea is the same. If fixing the car costs nearly as much as replacing it, the insurer will declare it a total loss.
Factors insurers consider include:
- The vehicle’s age
- Mileage
- Condition before the accident
- Market value in your area
- Estimated repair costs
Even moderate damage can result in a total loss if the car is older or has low market value.
Totaled Does Not Always Mean Undrivable
One of the biggest misunderstandings about total loss vehicles is that they cannot be driven. In reality, many totaled cars still run and can be driven safely.
A car may be totaled even if:
- The engine still works
- The damage is mostly cosmetic
- The car can be repaired
The issue is financial, not mechanical. The insurer is deciding whether repairs make economic sense, not whether the car is physically repairable.
What Happens After Your Car Is Declared Totaled
Once an insurance company declares your car totaled, it will offer a settlement based on the vehicle’s actual cash value. This value reflects what the car was worth before the crash, not what you paid for it.
At this stage, you generally have two options:
- Accept the settlement and give the car to the insurer
- Keep the car and receive a reduced payment
If you keep the car, the insurer will deduct the salvage value from your settlement. You are then responsible for repairs, inspections, and future registration requirements.
How Actual Cash Value Is Calculated
Insurers may look at:
- Vehicle pricing databases
- Local sales comparisons
- Condition reports
- Mileage adjustments
If you disagree with their valuation, you can ask for a breakdown and provide evidence such as recent maintenance records or comparable listings.
What Happens to the Title After a Total Loss
If your car is totaled and you keep it, the title may be branded as ‘salvage’ or ‘rebuilt’ after the repairs are made. This can affect resale value and insurance coverage.
A salvage or rebuilt title may lead to:
- Lower resale value
- Limited insurance options
- Additional inspection requirements
Before keeping a totaled car, it is crucial to understand these long-term effects.
What if You Still Owe Money on the Car?
If you have a loan on a totaled car, the insurance settlement may not cover the full balance. This is known as being “upside down” on the loan.
In that situation:
- The insurer pays the actual cash value.
- You remain responsible for any remaining loan balance.
Some drivers carry gap insurance, which can help cover the difference in the event of a total loss.
Contact Mayfield Law, LLC, Today for a Free Consultation With a Glynn County Car Accident Lawyer
If your car was declared a total loss after an accident in Glynn County, you may be facing questions about insurance settlements, loan balances, and what comes next. You do not have to handle these issues alone. The team at Mayfield Law can review your situation, explain your options, and help protect your rights throughout the claims process.
For more information, contact Mayfield Law, LLC to schedule a free consultation with our experienced personal injury attorneys. We proudly serve clients in Brunswick, GA, Nahunta, GA, as well as Glynn County and Brantley County. We’re here to offer trusted, compassionate legal guidance. Let us help you navigate the legal process and secure the compensation you deserve.
Mayfield Law, LLC Brunswick
1611 Union St
Brunswick, GA 31520
(912) 457-8557
Mayfield Law, LLC Nahunta
13903 E Cleveland St
Nahunta, GA 31553
(912) 733-4651
