What does it mean when a car is totaled?

When an auto insurance company determines that a car is totaled, it means that the cost of repairing the car is greater than the actual value of the car. In this situation, it's cheaper for an insurance company to give the driver a cash payout (or pay for a replacement vehicle) than it is for them to cover repair costs. You can always negotiate with your insurance company if you believe their estimate for your totaled car is incorrect.

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UPDATED: May 10, 2022

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