Total Loss Insurance

Total Loss Insurance is a type of coverage that applies when your vehicle sustains damage so extensive that repairing it would cost nearly as much as or more than its current value. In such cases, the insurance company often declares the car a “total loss” and provides you with a payout equivalent to the vehicle’s market value before the accident, rather than repairing the damage. This helps protect you financially by ensuring you’re compensated fairly when your car is no longer financially practical to fix.