Car Damage Total Loss Vehicle

When does an insurance company declare a car a total loss?

If you're involved in an accident and your car is declared a total loss, this means your car is beyond repair.

If you're involved in an accident and your car is declared a total loss, this means your car is beyond repair.

You can no longer use your car, or the repair costs exceed thecar's current market value. What yourauto insurancecovers in such a case depends on the type of coverage you have.

A car can be declared a total loss in two ways, namely:

Total technical loss

A technical total loss means that the car is so severely damaged that it can no longer be repaired. A car may also be considered a technical total loss if it has been stolen.

Economic total loss

If a car is declared an economic total loss, it means that the repair costs exceed the car's value. This is determined based on the car's current market value (before the accident) and its residual value (after the accident).

Your auto insurance coverage

We take a close look at your car, compare a wide range of auto insurance policies, and help you choose the right coverage.

Third-Party Liability (Mandatory)

Damage to others
Theft, joyriding, and missing persons
Window damage
Damage caused by fire or natural disasters
Damage to one's own vehicle caused by a collision

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Limited casco

Damage to others
Theft, joyriding, and missing persons
Window damage
Damage caused by fire or natural disasters
Damage to one's own vehicle caused by a collision

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All Risk (Liability + Comprehensive)

Damage to others
Theft, joyriding, and missing persons
Window damage
Damage caused by fire or natural disasters
Damage to one's own vehicle caused by a collision

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More info

Which type of coverage pays out when a car is a total loss?

The three standard types of auto insurance are:

Third-Party Liability Insurance

When you buy a car, you must immediately purchase at leastthird-party liability insurance. This coverage compensates fordamagecaused to others. For cars that are 10 years old or older, many people opt for only the mandatory third-party liability insurance. However, this insurance does not cover damage to your own car. If the accident was your fault, you will not be compensated for damage to your own car. If someone else caused the accident, you can seek compensation from the other party.

Limited Comprehensive Coverage

A good alternative with broader coverage islimited comprehensive auto insurance. This coverage doesn’t just compensate for damage to others. Damage caused by collisions with stray animals, hail and storms, lightning, fire and explosions, broken windows, theft, and attempted theft are also covered under limited comprehensive auto insurance. Owners of cars between 6 and 10 years old often opt for this coverage. If your car is a total loss due to (one of) the causes listed above, limited comprehensive auto insurance generally covers this damage. However, if you caused the accident, this coverage will not compensate you for the damage.

Comprehensive Auto Insurance

Owners of new cars up to about 6 years old often opt for the most comprehensive coverage, namelycomprehensive insurance. With thistype of coverage, damage to your own car caused by collisions is also reimbursed by your own insurer. In addition,vandalism damageis alsocovered under comprehensive insurance. Comprehensive insurance covers you whether the accident was your fault or caused by someone else. However, if you total your car while under the influence of alcohol or drugs, this is not covered.

Frequently Asked Questions About Total Loss of a Car

What is the current market value of my car if it's a total loss?

Thecurrent market value of the caris important if your car is declared a technical total loss. In that case, you are entitled to the current market value. If your car is declared an economic total loss, you are entitled to the current market value minus the residual value.
Suppose your car has a current market value of €5,000 and a residual value of €1,000. If the repair costs exceed €4,000 (current market value of €5,000 minus residual value of €1,000), your car will be declared an economic total loss.

You may keep the car, provided it can be repaired. Yourauto insurancewillthenpay youthe current market valueminus the residual value.

How do I calculate the current market value of a car that's a total loss?

In most cases, the current market value of a car that has been declared a total loss is calculated by aninsurance adjuster. If you disagree with the current market value, discuss this with the adjuster first and ask for an explanation and justification of the appraisal report.