Q. The insurance company says my car is a total loss. What does that mean?

The value of the vehicle, meaning the sum of the cost of repairs plus the value of the vehicle in damaged condition (salvage value), is greater than the actual cash value (ACV) of the vehicle prior to the accident.

What will happen to the vehicle? The insurance company will sell it to the highest bidder, who will either dismantle it for parts or re-sell it after repairing it.

What if you want to keep it? You have the right to retain ownership of the vehicle, but the amount of the settle may be reduced by the salvage value.