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Insurance

Total loss

When an automobile or other property suffers damage to such an extent that the cost of repairing it exceeds its value, we refer to this as a total loss. This can occur due to various reasons, such as accidents, natural disasters, or wear and tear. Essentially, it means that the cost of repairing the damage would be more than what the property is worth. In such cases, the owner may choose to sell the property as salvage or scrap. This concept is crucial to understand in the world of finance, as it has a significant impact on insurance claims and asset valuation.
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