A vehicle is considered a total loss when the cost of repairing the damage exceeds the vehicle’s current market value or when the damage is so extensive that it cannot be repaired safely or effectively. This determination is often made by insurance companies following an accident or other damaging event. In addition to the repair costs, factors such as the car’s age, mileage, and pre-accident condition are considered. A vehicle may also be declared a total loss if it has sustained significant structural damage that compromises its safety or if vital components, like the engine or transmission, are irreparably damaged. In such cases, the vehicle is deemed uneconomical to repair, and the insurance company typically compensates the owner based on the car’s actual cash value before the accident occurred.