What does it mean when your car is termed "totaled"?

When a car is described as "totaled," it typically means that the cost to repair the damages sustained in an accident exceeds the actual cash value of the vehicle before the accident. This evaluation often considers the car's market value and the extent of the damages. Insurance companies usually assess the cost of repairs and compare it to the vehicle's value; if the repair costs surpass this value, the car is declared a total loss.

Therefore, while the concept of a vehicle being "totaled" can encompass various factors, the fundamental definition aligns closely with the first choice, which captures the essence of the situation succinctly. This reasoning reflects industry practices and can vary slightly among insurance providers, but the core principle remains consistent.