What should I do if my vehicle is deemed a total loss? (2026)

You might wonder what to do if your vehicle is deemed a total loss. Maybe your insurance wants to total your car but you want to keep it. However, it’s usually best to file an auto insurance claim and collect a check for your vehicle’s actual cash value.

We’ll overview everything you need to know about total loss insurance, including what happens when your car is totaled, what to do when your car is totaled and you still owe money, and what happens when your car is totaled but still drivable. Enter your ZIP code above when you’re ready to compare quotes from the top providers.

What to Do When Your Vehicle Is Deemed a Total Loss

Your job is to file a claim with your insurance company so you can receive an ACV payout. If you suspect your vehicle will be deemed a total loss but haven’t contacted your insurance company yet, learn more about filing claims properly to ensure you’re compensated.

Learning how auto insurance companies value cars is important to understand what happens when your vehicle is deemed a total loss. For example, if you receive a $22,000 check for a vehicle worth $25,000 at market value, that’s because the insurance company calculates cash value and depreciation a bit differently than the market does. 

Regardless, you still receive financial compensation for losing your vehicle. Even if you don’t get back as much as you hoped, you can still put that money toward replacing your car. To better understand ACV, here are some determining factors: 

• Year
• Mileage
• Model
• Condition 
• Vehicle history
• Personal customization 
• Your location

If you’d like to understand even more about what your car is worth, you can learn how to get the total cash value of your vehicle. 

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Total Loss Auto Insurance Definition

In the auto insurance world, a total loss is when your car costs more to repair than it is worth. In other words, it is when your car’s actual cash value (ACV) is lower than the cost to repair the damages. 

When insurance companies evaluate bids for repairs, they’ll decide one of the following: 

• Total loss: When the cost to repair plus salvage value is greater than ACV
• Proceed with repairs: When the cost to repair plus salvage value is less than ACV

Salvage value, in this context, refers to the residual value of the damaged vehicle before repairs.

So, what does auto insurance do for you after a total loss decision? It works differently than when the company pays to fix your car. If your vehicle is deemed a total loss, you will be paid your car’s ACV as it was the moment before the accident occurred, minus your deductible.

It’s also important to note the type of insurance you need when your vehicle is deemed a total loss. You should shop around for an affordable full coverage auto insurance policy, including collision and comprehensive coverages, to protect your car against total loss. Check out the table below to see how much you might pay for full coverage from the best auto insurance companies:

Insurance Company	Clean Driving Record	One Speeding Violation	One Accident	One DUI Conviction
	$160	$188	$225	$270
	$117	$136	$176	$194
	$139	$173	$198	$193
	$80	$106	$132	$216
	$174	$212	$234	$313
	$115	$137	$161	$237
	$105	$140	$186	$140
	$86	$96	$102	$112
	$99	$134	$139	$206
	$59	$67	$78	$108

While collision auto insurance coverage pays for total loss after head-on collision with another vehicle, comprehensive covers your car if it gets stolen or totaled by weather damage.

What to Do if You Owe More on a Loan Than You Receive as ACV Payout

You might wonder what to do when your car is totaled and you still owe money on a loan. If you receive a total-loss ACV payout less than what you owe, you’re still responsible for paying the difference. In that case, a type of coverage called gap insurance can protect you from this financially difficult situation.

Gap insurance covers the difference between your ACV payout and loan balance, and you can usually purchase it with your current insurance company. If you make a low down payment or take out a loan with a lengthy term, it’s a good idea to consider gap insurance.

Read More:

• What is gap insurance and do I need it when filing an auto insurance claim?
• How To Negotiate a Total Loss Auto Insurance Settlement
• Vehicle Depreciation and Its Effect on Auto Insurance Rates

How to Replace Your Total Loss Vehicle

If you’ve filed your claim correctly, you should receive a payment equal to the ACV of your car. You can then use that money to pay off any remaining loan balance and replace your vehicle.

You can consider financing or leasing if the money you receive doesn’t equate to the total cost of a car you want. You can also visit dealerships and private sellers and negotiate when appropriate.

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More About What to Do When Your Vehicle Is Deemed a Total Loss

Knowing that you will receive financial compensation in the event of a total loss should bring you peace of mind. However, whether this is enough to get the replacement car you want is another issue. Since cars depreciate constantly, you will receive less money than you originally paid for your car when your claim finalizes.