The Truth About “Total Loss”

What It Really Means When Your Car Is Declared a Tota

Hearing that your car is a “total loss” after an accident can feel overwhelming. Most people assume it means their car is beyond repair—but that’s not always the case. At Victory Auto Body and Paint in Burbank, we often help customers understand what a total loss really means and what options they may still have.

Here’s a simple breakdown to help clarify this confusing part of the insurance process.

What Does “Total Loss” Mean?
A vehicle is typically declared a total loss when the cost to repair it exceeds a certain percentage of its actual cash value (ACV)—usually around 70% to 80%, depending on the insurance company and state regulations.

For example, if your car is worth $10,000 and the repair estimate comes in at $8,000, the insurance company may determine it’s not financially reasonable to fix it. Instead, they’ll offer a settlement based on its pre-accident value.

It Doesn’t Always Mean Unfixable
In many cases, a total loss vehicle can be repaired—but the insurance company has chosen not to pay for it. The damage may not be that severe; it could simply involve expensive parts, older vehicles with low book values, or labor-intensive repairs.

At Victory, we’ve seen many total-loss cars restored to full working order—especially when customers choose to buy back the vehicle from the insurance company.

What Happens Next?
If your car is totaled, you typically have a few options:

1. Accept the Payout: The insurance company pays you the ACV, and the car is sent to salvage.
2. Keep the Vehicle: You can buy back your totaled car and have it repaired at your own expense. It may be issued a “salvage title.”
3. Negotiate the Value: If you disagree with the payout amount, you can present documentation to support a higher value—such as recent maintenance records or aftermarket upgrades.

Rebuilding a Totaled Vehicle
If you decide to keep and repair your totaled car, you’ll need to go through a salvage inspection process before it can legally be driven again. Victory Auto Body and Paint can help guide you through this and ensure all repairs meet California standards.

Final Thoughts
Being told your vehicle is a total loss doesn’t mean the story is over. You may still have options depending on the damage, your insurance policy, and your preferences. At Victory, we’re here to help you understand those choices—and support you no matter which route you take.

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