Most states that use a total loss formula set the percentage between 70% and 80%. A car is declared a total loss when the cost of repair is more than the state’s set percentage of the car’s actual cash value (ACV). There are two common methods to determine a total loss: The formula for determining whether a car is “totaled” varies by state. That means if your car is worth $5,000 and you have a $500 deductible, the auto insurance company would pay you $4,500. If an insurer totals your car, you can receive payment for what the company deems the car is worth, minus your policy’s deductible. A totaled car is when a car insurance company decides that the cost to repair your vehicle exceeds (or is close to exceeding) what your vehicle is worth.