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.

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. The full picture is in what happens if your car is a total loss.

A total loss is separate from any injury you suffered in the same accident, since vehicle value and injury compensation are assessed through different parts of the claim. An independent lawyer can take on the injury 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.