According to the Texas Department of Insurance (TDI) consumer for auto insurance, an insurance company will pay for repairs or replacement only up to the car's actual cash value. Actual cash value is the amount that your car would have sold for before the accident

If the repair estimates are more than your car is worth, the insurance company will usually decide to “total" your car rather than pay to fix it. The TDI site goes on to state that insurance companies typically value your car by the National Automobile Dealers Association Used Car Guide or by a "market survey" showing average prices of various makes and models.

The company's offer might not recognize your car's condition, special features, value on the local market, or may be less than what you owe on your car loan. In these instances, be prepared to negotiate with the insurance company to get what you believe is a fair deal. A company is more likely to raise its offer if you can show that your car would sell for a higher price in your area. Get written price quotes for a similar automobile from several used car dealers, or look in the classified section of your local newspaper for used car prices.

The car insurance consumer guide speaks about the issue you are having by noting that sometimes the insurance company may want to total your car, but you'd prefer to have it repaired instead. You normally can keep your car if you are willing to subtract its salvage value from the insurance settlement. First make sure the cost to repair the car will not exceed the car's actual cash value. To find out the salvage value, contact local salvage yards for estimates

If your insurance company totals your car but you can't reach an agreement on the amount to be paid, you can demand an appraisal. Appraisal allows you and the company to hire separate damage appraisers. The two appraisers choose a third appraiser to act as an umpire. The appraisers then review your claim, and the umpire rules on any disagreements. The appraisal decision is binding, but only as to the amount of the loss.

For more information on what your consumer rights are in Texas regarding the totaling of a vehicle and auto insurance claims in general, contact the TDI at their site or at 1-800-252-3439.