TAMPA, Fla., Oct. 30, 2025 /PRNewswire/ -- A recent guide from USInsuranceAgents.com explains how vehicle owners can calculate their car's total loss value.
If a car sustains so much damage that it would cost more to fix it than it's worth, the vehicle is declared a total loss. The vehicle's value is essential to determining if the car is worth repairing.
Calculating a Vehicle's Total Loss Value
Several factors influence the determination of total loss. USInsuranceAgents.com lists them as follows:
- Actual Cash Value (ACV)
- Comparable Sales
- Deductible
- Mileage
- Optional Features
- Payout Formula
- Salvage Value
- Vehicle Condition
- Vehicle Make, Model & Year
Insurers rely most heavily on the vehicle's market value, which is what it would sell for in pre-damage condition.
Melanie Musson, a nationally recognized car insurance expert with USInsuranceAgents.com, explains, "Once a vehicle's value is determined, insurers compare that with the estimated cost to repair the damage. If the damage costs 70% to 80% or more of the value, the insurer will typically declare it a total loss."
Information Needed to Determine Value
Vehicle owners should compare their valuation with the insurance company's claim settlement offer to ensure it's fair. Drivers should start with the market value, which can be easily determined using Kelly Blue Book or NADA tools.
The next piece of information necessary is the vehicle's mileage. A high-mileage vehicle will have a lower value than the same vehicle with low miles. Vehicle modifications should be considered. Some modifications can considerably increase a vehicle's value.
The vehicle's condition before the damage will also be considered in determining its value. A vehicle in excellent condition should be worth more than one in poor condition.
Deductible and Auto Insurance Payout
Finally, a vehicle owner needs to understand how their deductible will apply. If the damage is covered by comprehensive or collision coverage, the owner will be responsible for the deductible, and the insurance company will cover the rest.
If the vehicle was damaged by another party, their insurance policy should cover the vehicle's value, and a deductible will not apply.
Read USInsuranceAgents.com's entire report here: Totaled Car Value Calculator (Estimate Your Payout)
SOURCE USInsuranceAgents.com
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