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Insurance companies will determine that your car is totaled if the cost of the damage approaches or exceeds the cars worth. Companies will determine your vehicles average retail value before the accident occurred. This process varies from state to state. In MS for example the value is determined by market value survey while in the state of WV the insurance company must use an official used car guide approved by the West Virginia Insurance Commission to determine the value of your auto. In MS a vehicle is typically deemed a total loss when the cost of repairs approaches or exceeds 75% of the Actual Cash Value. However, the insurance company may choose to handle your claim on a total loss basis even if the damage does not reach this percentage if the accumulative cost exceeds the value of the vehicle, i.e.: repair cost, tow charges, storage charges, car rental, etc. In this case it would be cost effective for the insurance company to pay the value of the car.
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