Constructive Total Loss
A Constructive Total Loss is a vehicle that is not physically destroyed but where the cost of repair plus salvage value exceeds the pre-loss value. Most total-loss declarations are constructive, not literal.
Related terms
Total Loss Threshold
The Total Loss Threshold is the percentage of a vehicle's pre-loss value at which an insurer must declare it a total loss. Thresholds are set by state law (statutory) or insurance company policy (contractual) and typically range from 65% to 100%.
Salvage Title
A Salvage Title is a designation placed on a vehicle's title after it has been declared a total loss by an insurance company. Once a vehicle has a salvage title, it cannot be legally driven on public roads in most states until it is repaired and re-inspected, after which it receives a Rebuilt or Reconstructed title.
Need help with a real total-loss claim?
SecondAppraisal handles the research and negotiation for you. Clients average $3,260 in additional value — $1,000 minimum guarantee or you pay nothing.
Start Free Consultation