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Total Loss
When an insurer determines repairing a damaged vehicle costs more than its pre-loss value.
What it means
An insurance company declares a 'total loss' when repair cost exceeds a threshold (typically 70-80% of pre-loss value, varies by state). The insurer pays out the actual cash value and takes the vehicle. If the owner keeps the totaled car, the title is rebranded as salvage. Total-loss vehicles are routinely donated.
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Ready to donate?
60-second form, free pickup nationwide, IRS Form 1098-C after sale.