A vehicle may be declared a total loss when, for example:

• It is stolen and not recovered
• It cannot be safely repaired
• The insurer determines that repairing it is uneconomical

The insurer will assess the loss in accordance with the policy terms.

How is the settlement calculated? #

Depending on how the vehicle is insured, settlement may be based on:

• Market value
• Agreed value
• A stated or sum insured value

The settlement can also be affected by matters such as:

• The applicable excess
• Outstanding premium
• Salvage arrangements
• Policy deductions
• Finance interests

What if the vehicle is financed? #

Where a financier has an interest in the vehicle, the insurer may pay some or all of the settlement to the financier.

The insurance settlement does not necessarily equal the outstanding loan balance.

If the insured settlement is less than the finance owing, the remaining finance obligation may still need to be addressed separately.

Is new vehicle replacement included? #

Some policies provide new vehicle replacement for eligible vehicles following a total loss.

Conditions can include:

• Vehicle age
• Original registration date
• Ownership requirements
• Availability of a replacement vehicle
• Other policy-specific criteria

Towing, storage, hire vehicle and other benefits also vary by policy.

Use our Claims page or contact us promptly following an accident or theft.