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 can handle the entire process for you.
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) 591-7112 or submit a photo of your damage to have one of Otto's body shops tow your car and help you with the insurance claim.
Get Started →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.
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.
4. You accept, negotiate, or dispute. The first offer is not final. You have the right to challenge the valuation with your own evidence.
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 or call Otto. We'll tow your car, handle insurance, and get you paid — fast.
Get Started →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. Many people get $1,000+ more by simply pushing back with data.
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 expedite the process by coordinating directly with your insurer — getting you paid as fast as possible.
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. Otto's partner shops handle this transition seamlessly. If a repair turns into a total loss, the shop pivots to the total loss process without you starting over.
From $150 for minor scratches to $10,000+ for structural damage. For a detailed breakdown, see our 2026 Collision Repair Cost Guide.