A term used by some insurance companies to describe a collision or other damage claims where the claim amount was equal to or greater than the full market value of the vehicle, and/or the vehicle’s structural integrity was severely compromised (see: Why does the estimate show “total loss,” but the vehicle was neither branded as “salvage” or “rebuilt?”)

Some insurance companies offer policy amendments which automatically result in Total loss – such as 43r and/or 19a – and/or may file a claim as Total loss for other business reasons. This can result in claim amounts that greatly exceed the actual dollar value of the damages to the vehicle – but matches the vehicle’s fair market value and/or MSRP.  Typically, in these scenarios an insurance company will take ownership of the vehicle for future re-sale.

A CARFAX Canada report and/or vehicle seller may show Estimate and/or Repair record amounts that are lower than the claim amount. Check with the seller to see if they have any repair documentation that shows cost to repair and/or ask them if vehicle was acquired through an insurance-based auction. 

CARFAX Canada recommends a thorough inspection be completed to confirm vehicle's condition.