What does Total Loss Mean?

The insurance adjuster said that my car is a Total Loss. What does this mean?

"Total loss" for insurance companies generally means that the cost of repairing a damaged vehicle would exceed the actual cash value of the vehicle. In other words, the cost of repairing the vehicle is greater than what the vehicle is worth.

When a vehicle is declared a total loss after a road traffic accident in Cyprus, the insurance company will typically pay the owner the actual cash value of the vehicle at the time of the loss, less any applicable deductible. The insurance company will then usually take possession of the damaged vehicle and either sell it for salvage or scrap it.

It's important to note that the definition of "total loss" can vary depending on the insurance company and the method of assessment. In some cases, a vehicle may be considered a total loss if the repair costs exceed a certain percentage of the vehicle's value, even if the actual repair costs are less than the vehicle's value.

----------------------------------------------

Find out more:

Press here to read about the compensation can you claim after an accident in Cyprus.

----------------------------------------------

How do Insurance Companies Decide Whether a Damaged Car is Total Loss?

Insurance companies use various methods to determine whether a damaged car or any other vehicle is a total loss, including:

Total loss threshold: The total loss threshold is the percentage of the vehicle's actual cash value (ACV) at which the cost of repairs exceeds the threshold. For example, if the total loss threshold is set at 75%, and the cost of repairs is estimated at 80% of the ACV, then the vehicle would be considered a total loss.

Actual cash value (ACV): The ACV is the value of the vehicle immediately before it was damaged. Insurance companies will typically look at the make, model, year, mileage, and condition of the vehicle to determine its ACV.

Repair estimate: Insurance companies in Cyprus will obtain a repair estimate from a qualified repair shop they usually work with or from a professional assessor. If the cost of repairs is greater than the ACV of the vehicle, it may be declared a total loss.

Salvage value: The salvage value is the amount that the insurance company could get for the damaged vehicle if it were sold for parts or scrap metal. If the salvage value plus the cost of repairs exceeds the ACV of the vehicle, it may be declared a total loss.

Once the insurance company has determined that the vehicle is a total loss, they will typically offer the owner a settlement based on the vehicle's ACV minus any deductible and salvage value.

What if I Disagree With the Estimate?

If you disagree with the insurance company's estimate of your vehicle's value, there are a few steps you can take:

Review the estimate: Carefully review the estimate and make sure it includes all the damage from the accident. If you find any errors or omissions, contact your lawyer and provide additional information to support your claim.

Get a second opinion: Consider getting a second opinion from a reputable auto repair shop or independent appraiser or assessor. They can assess the damage and provide you with an estimate that you we can use to negotiate with the insurance company.

Be careful: Beware of Conflict of Interest. You must make sure that the appraiser or assessor you will employ does not work with the insurance company of the at-fault driver as this could potentially create conflict. As many assessors in Cyprus get the bulk of their work from insurance companies this is something to look into before you employ an independent assessor.

Be prepared for the negotiation: Once you have reviewed the estimate and got a second opinion, you can instruct you lawyer to negotiate with the insurance company to arrive at a fair settlement. Be prepared to provide your lawyer with the proper documentation to support your claim, such as photos, repair estimates, and receipts for repairs that have already been made.

Get Help for your Case Today

For a valuation of your case and to learn more about the procedure of claiming your compensation after your accident, contact us through telephone at +357 77776997 or through email. If you are unable to visit us to our offices, we can arrange a meeting to your place or hospital.

Our offices are in Nicosia and Limassol and we take undertake accident cases throughout Cyprus, before all district Courts in all cities of Cyprus, Nicosia, Limassol, Larnaca, Famagusta and Paphos.

The initial meeting/consultation is free and the decision of whether you wish to proceed with your claim is entirely yours. We will advise as to the merits of your case, the chances of success and the amount you may expect as compensation. We offer a no win no fee funding agreements which means there is no financial risk to you.

Find out More:

Press here to read more about how we secure your compensation.

Read more in our Cyprus Personal Injury Blog