{"id":18690,"date":"2021-05-04T20:00:00","date_gmt":"2021-05-04T12:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/car-total-loss.html"},"modified":"2026-03-26T16:01:50","modified_gmt":"2026-03-26T08:01:50","slug":"car-total-loss","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/transport\/car-total-loss.html","title":{"rendered":"What Does It Mean When Your Car Is Considered A Total Loss?"},"content":{"rendered":"\n

Have you ever wondered what it means for you and your car if you\u2019re involved in a traffic accident and the insurer declares your car a total loss? Here\u2019s everything you need to know about total loss car accidents and the five important things you have to do when your car gets totalled. Read below to find out.<\/strong><\/p>\n

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If you get into a major motor accident that causes severe damage to your car, there\u2019s a possibility that it could be considered \u201ctotalled,\u201d or in other words, unsalvageable. But how does one determine if their car is totalled?<\/p>\n

Besides being completely unrepairable<\/strong>, a car is considered totalled when its repair costs exceed its original value. Unfortunately, such traumatic situations have happened – and though we hope you never have to go through it – it would be helpful to know what to do if your car gets totalled.<\/p>\n

So here’s a quick breakdown of what\u2019s considered a \u201ctotal loss car\u201d and what to do when your car gets totalled.<\/p>\n

What does a total loss car mean?<\/h2>\n

According to insurance companies, a car is considered a total loss when the insured vehicle is damaged or destroyed to an extent that it cannot be repaired or recovered. In other words, the repair costs exceed the actual cash value of the vehicle<\/strong>. An actual value is an amount your insurer will pay after it\u2019s totalled in an accident.<\/p>\n

For example, if the damage costs you RM20,000 while your car\u2019s value is worth RM15,000, then your insurer would declare your vehicle as a total loss.<\/p>\n

Five things to do after a total loss car accident<\/h2>\n

Among the main issues, you have to face in the aftermath of a road accident is figuring out how to finance the damages and losses to your car. But if you have comprehensive car insurance coverage<\/a>, you don\u2019t really have to worry about forking out a huge amount of money from your pocket. We\u2019ve seen the news and pictures of cars being badly crushed in an accident – what if this happens to you?<\/p>\n

By the way, if you are on the lookout for car insurance or would like to renew yours, apply through us now to stand a chance to win a Petronas gift card worth up to RM300.<\/p>\n

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1. Report the accident to your insurance company<\/h3>\n

First things first, you need to immediately report the accident to your insurer<\/strong>. Filing for a car insurance claim can be a lengthy and tedious process as it usually takes some time for your insurer to sort out the claim approval. It also requires you to submit certain documents that you have to get from another party like the bank. The faster you file the report, the easier the next step will be.<\/p>\n

Related:<\/strong> The Ultimate Guide On How To File An Auto Insurance Claim In Malaysia<\/a><\/p>\n

2. Tow your car to the panel workshop for inspection<\/h3>\n

Tow to your insurance company’s preferred workshop. The workshop will determine whether or not your car is repairable and how much it will cost.<\/p>\n

If the workshop declares that your car cannot be repaired, your insurer will take note of the statement given by the workshop and send an offer letter to you stating that the vehicle is beyond economic repair<\/strong>, meaning the repair cost is estimated to be higher than the car\u2019s value.<\/p>\n

Most car insurance companies have their own list of panel workshops that they work with directly and this can help make the entire claim process more convenient. You can contact your respective insurer if you need information on the panel workshop listing.<\/p>\n

3. Prepare and submit the required documents to your insurer<\/h3>\n

Once the inspection at the workshop is complete, your insurance company will send a representative or adjuster to evaluate and assess your vehicle<\/strong> to confirm if your car can be declared a total loss. They will also guide and assist you with the documentation process accordingly. You need to prepare a checklist to make sure you won\u2019t miss out any important documents. <\/p>\n

Below are the documents you need to submit:<\/p>\n