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Total-loss threshold

A rule or calculation used in a particular jurisdiction or context to identify a total loss. Insurance repair decisions and title-branding rules can use different tests.

Why the term matters

Ask which rule was applied and what repair, salvage and vehicle-value figures were used. Do not apply a national percentage chart to a claim without verifying the relevant state and purpose.

A question to ask

“Where does this term appear in my report or policy, and how does it affect this specific calculation or next step?” Ask for a written explanation tied to the document.

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