Upload a photo for a free repair estimate in about 30 seconds, so you know what the repair would cost before your insurer decides. The full guide is below.
If your car is badly damaged, there's a real chance it's a total loss — meaning insurance pays you the car's value instead of repairing it. This guide explains how your insurance carrier determines if your car is a total loss, and how Otto's concierge can handle the process for you where we have a shop nearby.
A car is "totaled" when the cost to repair it exceeds its Actual Cash Value (ACV) — or a percentage of it, depending on your state. ACV is what your car was worth on the open market immediately before the accident, factoring in age, mileage, condition, and depreciation.
In California, there's no fixed percentage threshold. Insurers use a Total Loss Formula: if the cost of repairs plus the car's salvage value exceeds its ACV, it's a total loss. In practice, most California insurers total a vehicle when repairs reach roughly 65–75% of its value — because hidden damage discovered during teardown almost always pushes the final number higher.
Other states set explicit thresholds. About half the states use a fixed percentage — most commonly 75%. Some are lower (Nevada at 50%, Oklahoma at 60%) and a few are higher (Texas and Colorado at 100%). The rest, like California, use the Total Loss Formula.
Call or text (213) 514-7112 or get a free online auto body repair estimate to see what you're dealing with. Otto's body shops can tow your car and help you with the insurance claim.
Get My Free Estimate →1. You file a claim (or Otto helps you file one). Your insurer assigns an adjuster. Once your car is in the shop, the adjuster inspects the damage. If the estimated repair cost is close to or above the vehicle's value, they order a full valuation. (For the steps from the scene onward, see what to do after a car accident; if another driver caused the crash, what to do after someone hits your car covers them in detail.)
2. The insurer determines ACV. They use third-party valuation tools (like CCC One or Mitchell) to calculate your car's pre-accident market value based on year, make, model, mileage, condition, features, and local comparable sales.
3. They declare a total loss if repairs plus salvage value exceed the ACV. You receive a settlement offer — the ACV minus your deductible. Any rental usually ends a few days after that offer — see who pays for the rental. If repairs come in below that line instead, the car gets fixed and you may have a diminished value claim for what it lost in resale value.
4. You accept, negotiate, or dispute. The first offer is not final. You have the right to challenge the valuation with your own evidence. If another driver caused the crash, our guide to accidents that weren't your fault covers what else you can claim. For more on navigating the insurance process, see our insurance claim vs. repair estimate guide.
5. You transfer the title to the insurance company, they take the vehicle, and you receive your payout. (You can also choose to retain the vehicle — the insurer pays you the ACV minus the salvage value, and the car receives a salvage title.)
Upload a photo for a free estimate. Where Otto has a shop nearby, our concierge coordinates the tow, the insurance claim and the repair.
Get My Free Estimate →Upload a photo to Otto and our AI will give you an instant damage estimate. If that estimate approaches or exceeds 65–75% of your car's value (check KBB or NADA for a rough ACV), there's a strong chance the insurer will total it — especially after hidden damage is found during teardown.
Yes — and you should. The insurer's first offer is based on automated valuation tools that frequently undervalue vehicles. Research comparable sales in your area, document your car's condition and upgrades, and present evidence to the adjuster. Documented comparable sales are what move a first offer.
The settlement goes toward paying off your loan first. If you owe more than the car's ACV, you're responsible for the difference — unless you have gap insurance, which covers that shortfall. If you're financing a car, gap insurance is worth having for exactly this reason.
In most states, yes — but the insurer will deduct the salvage value from your payout, and the car will receive a salvage title. This makes sense if you want to repair it yourself or sell it for parts, but be aware that salvage-titled vehicles have significantly reduced resale value and may be harder to insure.
The standard process can take 2–4 weeks between filing, inspection, valuation, negotiation, and title transfer. Through Otto's concierge, our partner shops coordinate directly with your insurer, which helps keep each step moving.
This happens more often than people expect — especially with older cars. Visible damage that looks like $3,000–$4,000 can become $7,000+ after teardown. If a repair turns into a total loss, the shop pivots to the total loss process without you starting over.
Then the claim runs against their insurer instead of yours, which changes the deductible picture and what else you can recover. See what to do after an accident that wasn't your fault. If they took off, our hit and run guide covers which of your own coverages applies.
From $150 for minor scratches to $10,000+ for structural damage. For a detailed breakdown, see our 2026 Collision Repair Cost Guide.