In the first half of 2026, 11.2% of insurance claims on cars that could still be driven ended with the vehicle declared a total loss. In 2022, the figure was 6.3%, according to a mid-year update from CCC Intelligent Solutions, which supplies claims software to insurers.
Older cars dominate the totals. Vehicles 7 years old or older made up 74.3% of total loss valuations in the same period, CCC found.
The shift shows up across all claims, too. J.D. Power’s 2026 auto claims study found that 26% of claims were classified as total losses, up from 16% four years earlier, Insurance Business reported.
For drivers who keep a car for a decade or more, the odds that a modest crash ends with a check instead of a repair have climbed.
Why a car that runs can be a total loss
Insurers weigh repair costs against the car’s value. Most companies treat a car as a total loss once the initial repair estimate reaches about 75% of its actual cash value, the Maine Bureau of Insurance says.
Some insurers may total a car even when repairs would cost less, according to the Texas Department of Insurance.
Both sides of that math have moved against older vehicles.
The average repairable claim cost about $4,821 in the first half of 2026, up from about $3,331 in 2020, while the average adjusted value of a vehicle in a total loss valuation was $13,594, CCC reported. Parts prices were 8% higher than a year earlier.
In the first quarter of 2026, 29.9% of repairable estimates called for calibrating sensors or cameras, up from 23.3% a year before, Insurance Journal reported from the CCC data. On a car worth a few thousand dollars, a bumper full of electronics can tip the estimate past the line.
The payout is a number you can check
A total loss settlement is based on actual cash value, roughly what the car was worth just before the crash.
Insurers may build that figure from published valuation guides, market surveys or outside valuation services, and conditions such as rust, prior unrepaired damage and high mileage lower it, according to the Maine bureau.
Ask the insurer which source it used to value your car. Then look at what similar vehicles with comparable mileage and features sell for in your area. Dealer quotes, online listings and local ads all help, as does documentation of special features or custom parts.
It also pays to ask how the offer handles sales tax, fees and rental coverage.
If the claim is under your own policy and talks stall, look for an appraisal provision. Under that process, you and the insurer each hire an appraiser, a neutral umpire may be chosen, and agreement by any two of them is binding.
Keeping the car is possible, with strings
Some owners would rather keep a car that still runs. Tell the insurer as soon as possible. It will subtract the car’s salvage value from your payment, and the car may be issued a salvage title, which could make it harder to sell or insure later.
In Texas, a repaired salvage vehicle needs a new title before it can be driven again. Title rules vary by state, so check with your motor vehicle agency before deciding.
A loan can outlast the car
If you owe more on the loan than the car is worth, the difference is your responsibility. Gap coverage is designed to cover that shortfall, but only if you bought it before the crash.
The gap is common. In J.D. Power’s 2026 study, Insurance Business reported that among total loss customers with an auto loan, 25% received a payout below their outstanding balance.
What to settle before the next policy
Deductibles are changing these claims, too. In the first half of 2026, 28.4% of repairable collision claims carried a deductible of $1,000 or more, up from 20.3% in 2022, and owners paid 26% of repair orders themselves, averaging about $1,941, CCC found.
A higher deductible can lower a premium, so long as you choose a deductible you can cover in cash when a claim comes.
A total loss usually means a replacement vehicle and a new policy to match, so it’s a natural time to see what other insurers charge. Before you sign, you can compare car insurance quotes for the replacement car.
Keep the declarations page from your old policy handy so each quote reflects the same limits and deductibles, and price at least two deductible levels to see how much each one saves.
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