What does total loss mean in motor insurance?

[Nikhil Shetty]

What does total loss mean in motor insurance?

[Puneet Sood]

Car insurance companies label a vehicle a “total loss” when the cost to repair the vehicle to its pre-damaged state exceeds the cost of the vehicle's worth, or actual cash value.

[Arti · Accepted solution]

Total loss in motor insurance refers to accident damage to one's vehicle where the cost of repairs amounts to more than 75% of the IDV on policy.