What a total loss is
A car is declared a total loss when repairing it would cost more than it is worth, or more than a percentage of that value set in your policy. It also applies when the car is destroyed or stolen and not recovered. The decision is based on the loss adjuster's report.
A total loss does not mean the car cannot be repaired technically; it means repair does not make financial sense under the terms of the contract.
Pre-accident value and market value
These are the two terms that come up most in these cases, and it is worth keeping them apart:
- Pre-accident value ('valor venal'): what your car was worth just before the incident, allowing for age and wear. It is usually the lowest figure.
- Market value ('valor de mercado'): what it would cost you to buy a similar car (make, model, year, mileage and condition). It is usually somewhat higher.
- New-for-old value: some comprehensive policies guarantee it for the first few years of the vehicle's life.
Which value applies depends on whether the claim is on your insurance or the other party's, and on your policy wording. If the other driver was at fault, Spanish courts often consider the pre-accident value plus an extra percentage, known as 'valor de afección', although each case is assessed on its own.
What your options are
- Accept the payout and hand the car over to the insurer, which arranges its deregistration or sale.
- Keep the car (the salvage) in exchange for a lower payout, and repair it yourself if it is worth it.
- Ask for a review if you think the valuation does not reflect the market, providing adverts for similar cars or a report from an independent adjuster.
Before deciding, read your policy carefully and ask for the payout calculation in writing. If you have an excess, check whether it is deducted.
If you accept the payout, the insurer will normally ask for the vehicle documents (registration certificate and technical sheet), the keys and a signed transfer document. If the car was on finance, part of the payment may go directly to the lender. Ask too what happens to the road tax and to any insurance premium you have already paid.
How we can help
If you decide to repair the car despite the total loss, we will prepare a realistic repair estimate so you can compare. And if you would rather replace it, we also sell used cars, checked over in our own workshop.
Rules and case law on payouts are complex and depend on each case. This guide is for general information; for important decisions, speak to your insurer or a professional.
Frequently asked questions
Can I keep my car if the insurer writes it off?
Usually yes, although the insurer will deduct the salvage value from the payout. Ask them for a breakdown of the figures before deciding.
Will I get back what I paid for the car?
Unless your policy includes new-for-old cover, you will normally be paid the pre-accident or market value, which is lower than the purchase price.
What if the figure seems too low?
Look for adverts for equivalent cars and send them to the insurer. You can also commission a report from an independent adjuster.
Can you help me find another car?
Yes. We have used cars for sale and will tell you what checks we have carried out before selling them.
How long does the insurer take to pay?
It depends on the company and on the paperwork being complete. Handing everything over promptly and asking for written confirmation usually speeds things up.
Other guides
What to do after a road accident
The steps, in order, to keep yourself safe, notify the right people and document the incident properly.
ReadHow to fill in the accident report form
Box by box: how to complete the Spanish accident report form without mistakes that could complicate your claim later.
ReadFree choice of repairer: your rights
Even when insurance pays, you decide where your car is repaired. Here is how to exercise that right step by step.
ReadVehicle loss assessment, explained
Who the loss adjuster is, what they check, how long it usually takes and what you can do if you disagree with their assessment.
ReadA guide to buying a used car
Which documents to ask for, what to check before paying and what warranty you are entitled to when buying second-hand.
ReadCan we help with your case?
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