Total Loss
An insurance designation that the cost of repair exceeds the vehicle's pre-loss value (or a state-defined fraction of it).
A total loss is the formal insurance-industry designation for a vehicle whose repair cost has been determined to exceed its pre-loss value, or to exceed a state-defined fraction of that value. Once designated a total loss, the insurer pays the policyholder the actual cash value (less deductible) and takes ownership of the vehicle, which then enters the salvage auction stream.
Total-loss thresholds vary by US state. Some states use a strict 75% formula (repair cost ≥ 75% of pre-loss value triggers total loss). Others allow the insurer’s judgment within a reasonable range. "Cost of repair" in the formula includes labour, parts at retail, paint, supplemental damage discovered during teardown, and rental-car costs — not just the obvious bodywork.
Once an insurer totals a vehicle and takes title, the vehicle is permanently branded, typically as salvage. The brand follows the title for life, even after a successful rebuild and re-inspection.