What happens when a traffic accident devastates your car? It's not a scenario most drivers want to think about. Still, it's one you should consider before it happens, especially if you're shopping around for an auto insurance company


When you "total" your car, you cause substantial damage, and your insurance company has the right to decide that your car isn't worth fixing. The decision to total is a function of the car's worth. Minor damage to a 15-year-old Buick might result in totaling the car, while major damage to a brand-new Saab might not. Auto insurance claims adjusters usually determine a car's actual cash value by using their company's proprietary database of prices.


Some companies total vehicles at 51 percent of its actual worth; some total at 80 percent. The insurance company will pay you the car's actual cash value, minus any deductible on your coverage. Then the car goes to a salvage yard, where it's auctioned off to the highest bidder and usually chopped up for parts. The insurance company keeps whatever money it got for the car in salvage.