Collision car insurance can provide coverage for the cost of a total loss, but it depends on the specifics of your policy and the circumstances of the accident. Let’s delve into the details.

What is a total loss?

A total loss typically occurs when the cost of repairing the damaged vehicle exceeds its actual cash value (ACV) or in some cases, when the vehicle is stolen and not recovered. In such situations, the insurance company may deem the vehicle a total loss.

What is the coverage for a total loss?

If your collision car insurance policy includes coverage for total loss, it can help reimburse you for the ACV of the vehicle at the time of the accident, minus your deductible. This coverage is valuable if your vehicle is extensively damaged or beyond repair.

How to calculate the actual cash value of your car? 

The insurance company determines the ACV based on factors such as the vehicle’s age, condition, mileage, and market value. It’s important to note that the ACV may not necessarily reflect the amount you initially paid for the vehicle.


To understand the extent of coverage for a total loss, review your collision car insurance policy or contact your insurance provider. They can provide you with detailed information regarding the coverage limits, deductibles, and any additional terms or conditions that may apply.

Remember, insurance policies can vary, so it’s crucial to understand the specifics of your policy to ensure you have appropriate coverage in the event of a total loss.

About the Author: CompuQuotes Editorial
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