The car is considered to be “totaled” when the cost of repair either exceeds the actual value cost (ACV) or is exorbitantly high. It is also called “written off”.

For example, if the car value is $10,000 and the estimated cost of repair is $8,000 then the insurance company considers such a vehicle as a total loss. It takes over the ownership and may acquire the “salvage title” for the car.