When it comes to determining whether a car should be totaled, insurance companies take into account the cost of repairs, the residual value, and the actual cash value of the car. Depending on the state, the damage must equal a certain percentage of the car's current value in order for it to be considered totaled. In New York, for instance, a car with damage equivalent to 75% of its value is considered totaled, while in Texas, the damage must equal 100% of the car's current value. In states that have a specific total loss threshold, an insurance company will add up the total of your car if the estimated repairs exceed that percentage of fair market value.
If your state does not have a specific total loss threshold, then your vehicle will be considered a total loss if the cost of repairs plus the residual value is greater than the car's actual cash value (ACV). In this case, Progressive and GEICO will add up the total of your car if the cost of repairs plus the vehicle's scrapped value equals or exceeds its actual cash value.
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