total loss
Total loss refers to a situation where an asset, such as a vehicle or property, is damaged beyond repair or has lost its value entirely. In insurance terms, it means that the cost to repair the damaged item exceeds its worth. For example, if a car is in a serious accident and would cost more to fix than it is currently valued at, the insurance company may declare it a total loss. In such cases, the owner typically receives a payout equivalent to the asset’s market value before the damage occurred.
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Total loss refers to a situation where an asset, such as a vehicle or property, is damaged beyond repair or is entirely destroyed, making it impossible to use or recover its value. In insurance terms, it means that the cost of repairs exceeds the item's worth, or it's been lost with no chance of recovery. For example, if a car is involved in a severe accident and the cost to fix it is higher than its market value, it is considered a total loss, and the owner may receive compensation from their insurance policy.