If your car cannot be repaired after a collision, or would cost more to fix than its market value, and you have collision coverage, your collision insurer should pay the market value of the car, minus the deductible.
In return, you would be expected to sign over the vehicle’s title to the insurer who would then sell the car for its salvage value. The market value of the car is generally determined by the price for which a similar car might sell in your area. The insurer will usually provide you with the information that it has found about comparable cars, if you ask for verification of the estimate.
If you do not have collision coverage, you are entitled to recover these costs from the other party’s liability carrier if the other party is found to be at fault for the accident.