Car insurance glossary
What is total loss?
A total loss occurs when an insurer determines that a damaged or stolen vehicle meets the applicable standard for being totaled.
Also called: totaled car
Glossary date: May 4, 2026
How it works
The decision may compare repair cost with actual cash value or follow a state threshold. Safety and hidden damage can also affect the evaluation.
Example
A vehicle is worth $12,000 before a crash and needs extensive repairs. The insurer determines it meets the state and policy standard for a total loss.
Why it matters
The settlement, loan payoff, title status, and ability to keep the vehicle can all depend on the total-loss process.
What to check on your policy
Ask for the valuation and calculation in writing. Confirm deductible, taxes, title steps, lender payment, and owner-retained salvage rules.
Related car insurance terms
Put the terms into context
Read the full guide, find a nearby GoAuto office, or start a quote with the coverage details you want to discuss.