A car is “totaled” when you have been in a car accident that caused more damage to the car than it is worth or is so badly mangled that it isn’t repairable. Your car insurance provider will owe you the cash value/retail market value of your car. An appraisal of the value of your car will be made by referencing independent auto-value guides such as Kelley Blue Book and NADA.
Once the value of the car has been established your car insurer may choose to:
- Replace the car with a comparable car for sale in your area, increasing the search in 25 mile increments if one is not found close by.
- Offer a cash settlement