If your car is in an accident, there’s a growing chance the insurance company will declare it a total loss instead of paying to fix it. This isn’t just bad luck — it’s part of a bigger trend happening across the country.
Recent industry data shows that the percentage of cars being declared total losses reached a record high in 2025. Several factors are driving this change:
- Repair costs have gone up significantly in recent years.
- Modern cars contain more expensive technology and parts.
- Many people now have higher insurance deductibles, so they’re less likely to file small claims.
When repair costs get close to (or exceed) what the car is worth, insurance companies often decide it makes more financial sense to total the vehicle rather than repair it.
What This Means for You
If your car is older or has higher mileage, it’s more likely to be totaled even after what seems like a moderate accident. On the positive side, you’ll receive a check for the car’s value (minus your deductible). On the downside, you’ll need to find a replacement vehicle, which can be stressful and expensive in today’s market.
Practical Tip
Before an accident happens, know the approximate value of your car. You can check sites like Kelley Blue Book or Edmunds. If your car is worth significantly less than what it would cost to replace it, consider whether your current coverage level still makes sense.
If your vehicle has been declared a total loss and you believe the settlement offer undervalues your car, you may have options — including invoking the appraisal clause.
Contact Timothy for a confidential review of your total loss claim →Source: Industry data compiled by major claims technology providers, including CCC Intelligent Solutions (2026 reports).