what does a "total loss" mean?

Question

I recently wrecked my car (the bumper came off and some other minor damage was done) and the insurance adjuster said my car was a "total loss" and gave me money and my car back. What does a "total loss" mean? Is it just for insurance purposes?

Answer 1

The cost of the repair is more than the value of the vehicle. So they pay you what they say the vehicle is worth.

Answer 2

"Total loss" is when the damages exceed a certain percentage limit of the supposed value of the vehicle---usually, 70 percent but it differs from one company to another...Say you have an older car worth 3000.00---if you have an accident and it will cost more than 2100.00 to fix, the insurance co. will declare it a total loss and give you a check for the value of the vehicle and either take the vehicle or you can buy it back from them at a salvage price, fix it up and you will have to have it retitled as a "salvage" vehicle--- if you ever want to sell it again, it will not be worth as much as a non-salvage vehicle. A word of caution...make sure the insurance company gives you enough money to go out and buy another car just like yours or as close to it as possible in general condition, age, color, mileage, engine size, other options,etc........any recent major repairs will affect the price as well. They usually try to lowball their price of what the car is worth so be prepared to haggle and hold out for what's right.

Answer 3

It usually means that it would cost more money to repair the car than it's (EDIT oops its) blue-book value. It is used by insurance companies as a way to assess how much damage was done and if it needs repairs or just give up. No insurance company will ever give out more money than they take in. That would ruin their purpose, which is to take our money as efficiently as possible. Allstate gives a break to people who don't have accidents. Maybe somebody there has a conscience. Either that, or they are over-charging to begin with.

Answer 4

total loss means that the amount to fix your car is more than the value of the car, therefore, it would cost more to fix than it is worth. So they are saying they will not fix your car and it is considered 'totaled". They gave you the value of the car. You can use the money toward a new car or try to find someone that will fix it with the money you received.

Answer 5

It means that the cost of repairing the car is more than the value of the car. So the car will be "totalled" or listed as a "total loss." They will send you a cheque for the value of the car and tell you to buy a new one.

Answer 6

Yep, the cost of repairs exceeds the retail value of a similar car. It is possible that they will offer you less than you actually owe on a car, if you have a loan. You can always ask for another adjuster and/or file a complaint with the insurance commissioner in your state. Usually, they're willing to up the settlement price if you balk at their offer.

Answer 7

Start looking for another car. Your repairs will cost more than the car is worth. Total Loss.

Answer 8

Total loss means the amount of money to fix it, is worth more than the car's worth.

She then writes you a check.

I don't know why she gave you your car back though...

Answer 9

The first of the 5 points of Calvanism means that until a man (or woman) has been preached the word of God and made aware of the Gospel - he/she is "totaly depraved" of knowing God and cannot find salvation apart from knowing Him. This was believed for many years to be true but now we know (by a better understanding of the Bible and the Grace of God) that it is NOT true. We still need to hear the word of God in order to be saved from eternal death (Romans.10:17) but we are not totaly depraved of knowing that God exists. It is written; that to some degree, the law of God is written on every human's heart and that because we are made in the "image of God' - whether we are Atheists or other - we subconsciously know that God the Creator and Judge of the world does exist and that we are accountable to Him. So to say that man is "TOTALY depraved" of knowing and understanding God is untrue. “For when the Gentiles, which have not the law, do by nature the things contained in the law, these, having not the law, are a law unto themselves: Which shew the work of the law written in their hearts, their conscience also bearing witness, and [their] thoughts the mean while accusing or else excusing one another;)” (Rom. 2:14-15 AV)

Answer 10

It means that cost of the repairs is near to, or greater than the value of the vehicle according to their analysis.
Happens all the time, especially with older vehicles.