What determines a car to be totaled?
In nontechnical language, a car is totaled when wrecked so badly that it is undrivable. Government legislation and the insurance industry both describe a totaled car using dollars.DefinitionBoth the government and the insurance industry define a total loss as a vehicle that is damaged so that the cost of repair is more than the value of the car.LegislationThe insurance company declares a total loss, but state law regulates what constitutes a total loss. For example, the state of Alabama allows a total loss determination if the car repairs are more than or equal to 75 percent of car’s value.Company AssessmentInsurance companies use the state total loss percentage, but their own damage assessment and valuations. A claims adjuster determines the car’s current value based on the insurance company’s own valuation tables.Non-Automotive LossA “constructive” total loss is where the item is lost, abandoned or there is no way to avoid a total loss (an inventory of fresh fruits going bad, for exa
