Okuzeka
Insurance vocabulary · Claims

Total loss

Meaning in insurance, with examples

nounCore term

In insurance, total loss means: A situation in which insured property, especially a vehicle, is destroyed or so badly damaged that repairing it would cost more than it is worth.

In Turkish: tam hasar, pert

How it is used

Adjusters declare a vehicle a total loss, and the insurer then pays its market value instead of repairing it. In the UK people say the car was 'written off' or is 'a write-off'. The opposite is a 'partial loss'.

Example sentences

  1. The car was declared a total loss after the flood, so we paid the customer its market value.

  2. The adjuster said the repair bill would be higher than the car's value, so it's a total loss.

Common collocations

  • declare a total loss
  • constructive total loss
  • total loss payment
  • treated as a total loss
  • lossDamage, destruction or a financial cost suffered by an insured person or property, which may lead to a claim.
  • comprehensive insuranceCar insurance that pays for damage to the insured vehicle itself, for example from a collision, theft, fire or natural events.
  • claims adjusterA specialist who investigates a claim, inspects the damage and decides how much the insurance company should pay.
  • settlementThe final agreement on a claim and the payment that closes it, made after the insurer and the claimant accept the amount.

More terms: Claims

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This page explains English vocabulary for learners. It is not financial advice.