Your Car is Totaled - How Much Will Insurance Pay?

A vehicle is considered a total loss if the insurance company determines that the total cost to repair your car to pre-accident condition, plus fees for storage, salvage and a replacement rental car (if included in your policy), is more than a certain percentage of car's retail value. Insurers set their own allowable percentage, within state-mandated guidelines (typically around 60 to 75 percent), and use their own formulas to determine a car's value and estimated repair costs.

Thus, if your $4,500-valued 2002 Honda Civic sustains $1,800 worth of damage -- moderate bodywork and repainting these days -- it might be deemed totaled, even though the engine still runs fine. On the other hand, a late-model Mercedes could sustain far greater damage and still be considered salvageable.

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