Total loss

A total loss is an insurer’s decision that repairing a damaged vehicle would cost more than the vehicle was worth before the accident, so a cash payout is offered instead of authorising repairs.

This matters because the payout is based on the car’s value just before the crash, not on what a replacement of the same age would cost today, which often frustrates claimants. The full picture is in what happens if your car is a total loss.

A total loss is a separate issue from any injury you suffered in the same accident, since vehicle value and personal injury compensation are assessed and paid through different parts of the claim.

Even a car only a few years old can be declared a total loss if repair costs are high relative to its market value, which surprises many owners. It is not a reflection of how safely the vehicle drove before the crash.