Total Car Loss: Is Your Car a Total Loss After the Crash?

A total car loss happens when the vehicle repair cost after a motor vehicle accident, plus the vehicle’s salvage value, exceeds the actual cash value (ACV). California uses the Total Loss Formula (TLF), not a fixed percentage threshold. 

Under this formula: Repair Costs + Salvage Value ≥ Actual Cash Value = Total Loss

California does not set a specific percentage like some other states. Instead, California law declares a vehicle a total loss when it becomes “uneconomical to repair” based on this formula calculation.

For example, imagine driving down Florin Road, one of Sacramento’s busiest streets, when another driver runs a red light and crashes into your vehicle. Your airbags deploy, the front frame is crushed, and the engine is damaged. Even if the car looks repairable, an insurance company may declare it a total loss when the repair costs plus what they could sell your damaged car for (salvage value) exceeds what your car was worth before the accident.

This often happens when:

• Airbags deploy
• There is significant frame damage
• The engine or electrical system fails
• Multiple systems are compromised in auto accidents

What Insurance Companies Evaluate

After a collision, your insurance adjuster evaluates the damage and determines whether to repair or declare a total loss. They use California’s Total Loss Formula, comparing the repair costs plus salvage value against your car’s pre-accident actual cash value.

Key factors they review:

1. The vehicle’s actual cash value
2. Mileage, year, and condition before the accident
3. Whether it’s a motorcycle accident, a truck accident, or a multi-vehicle crash
4. Internal damage is not visible in photos
5. Medical bills and potential personal injury claims if injuries are involved

Insurers will often rely on third-party data (like Kelley Blue Book or CCC) to assess your car’s value. If the formula calculation shows a total loss, the insurer will make a settlement offer.

Common Indicators of Total Loss

What Happens Next?

If the insurer deems your vehicle a total loss, you’ll typically receive a settlement offer based on the car’s pre-crash value. Unfortunately, auto accident victims often find these offers don’t reflect the true worth of their vehicle or the trauma they’ve endured.

If you suffered spinal injuries, traumatic brain injury, or another serious condition, your focus should be on medical treatment, not insurance disputes. That’s where a personal injury lawyer comes in.

What If You Disagree With the Total Loss Determination?

You have every right to challenge the insurance company if you believe the total loss designation or payout is unfair. Under California Department of Insurance regulations, you can dispute the insurer’s valuation and hire an independent appraiser.

Here’s what you can do:

1. Request the insurer’s valuation report
2. Obtain a police report from the accident
3. Get an independent repair estimate
4. Provide documentation (photos, receipts, service history)
5. Consult our Sacramento car accident attorney, with experience handling car accident claims.

We handle disputes involving total loss claims, economic damages, and non-economic damages after auto accidents.

Know Your Rights Under California Law

California’s personal injury law helps accident victims seek the highest compensation for property loss and physical injuries. Whether your case involves a wrongful death, lost wages, or ongoing medical expenses, an attorney ensures your voice is heard.

If you’re dealing with both a totaled car and a serious personal injury, you could be entitled to compensation for:

• Under CACI No. 3903, you may be entitled to claim for medical bills, car value, and lost wages under economic damages.
• Non-economic damages, including pain, suffering, and emotional distress, may be included in the claim under CACI No. 3905A.
• Future costs like physical therapy, mobility aids, or long-term care

Remember, California usually allows two years from the accident date to file a personal injury claim. Missing that deadline means you may lose the right to recover anything.

When Should You Call a Lawyer?

You should speak with our personal injury attorney when:

• Your car was declared a total loss, but you disagree
• You suffered serious injuries requiring ongoing medical treatment
• You’re facing pressure to settle quickly
• You’re not sure what your auto insurance covers
• You lost a loved one due to wrongful death
• You need help navigating personal injury law

Our experienced Sacramento car accident lawyer will review your case and fight for every dollar you deserve from the insurance adjuster or in court. At Farahi Law Firm—Sacramento, we’ve recovered millions for clients, helping them get the medical care they need and compensation they deserve.

What You Can Do After a Sacramento Car Crash

Taking the right steps immediately after a crash in Sacramento can protect your case. Here’s what to do:

1. Call 911 and get a police report.
2. Seek medical treatment, even if injuries seem minor.
3. Notify your auto insurance provider.
4. Document the scene and damages (photos, videos, witnesses).
5. Keep track of medical bills, receipts, and time off work.
6. Don’t sign anything without legal review.
7. Contact our Sacramento auto accident Lawyer for a free case evaluation.

Frequently Asked Questions