"Totaled" is shorthand for what an insurance company officially calls a total loss — a vehicle the insurer has decided isn't worth fixing. It doesn't necessarily mean the car can't run or can't be repaired. It means the math doesn't work in the insurer's favor.
Most insurers compare two numbers: the estimated cost to repair the car, and the car's actual cash value (ACV) right before the damage happened. If the repair estimate crosses a set percentage of that value — commonly somewhere between 60% and 100% depending on the insurer and state — the car gets declared a total loss instead of being repaired.
That threshold is a business decision, not a safety rule. A car that's structurally fine but has expensive-to-replace parts (a newer transmission, a damaged frame rail, extensive electronics) can get totaled even if it would otherwise run for years.
No. A totaled car almost always still has value — in usable parts, in recyclable metal, or as a project car for someone willing to do the repair themselves. That's a completely separate question from whether it's worth it to you to fix it and drive it — see our guide on deciding whether to repair or replace a car.
If you're keeping a totaled car and don't plan to repair it, you generally have three options: sell it as-is for parts or scrap, part it out yourself, or repair it and get it re-titled and re-inspected (rules vary by state). For most owners, selling it as-is is the fastest way to get cash without sinking more money into a car the insurance industry has already written off.