How insurance total loss payouts work in Canada
When repair cost is too high relative to your car's value, insurers write off the vehicle and pay you the market value minus your deductible. If you keep the car, they deduct salvage value. The formula is simple, but the market value itself is negotiable. Insurers start from averages that may not capture your specific vehicle's condition, trim, or local market premium.
Look up your car's value first
This tool lets you enter year, make, model, and kilometres, then pulls current BC AutoTrader listings for similar vehicles. The mid-point of those listings becomes your starting market value. You can also enter a value manually if you already have comparable evidence or an appraisal.
Repair cost and the write-off decision
Add the estimated repair cost to see the repair-to-value ratio. Most insurers write off vehicles when repairs are a high percentage of the value, but there is no single published threshold that applies in every case. Safety, parts availability, hidden damage, and salvage value all factor in. The ratio is context, not a guarantee.
Keeping the car means a salvage deduction
If you choose to keep the written-off vehicle, the insurer reduces your payout by the salvage value. That salvage amount is what they could have sold the wreck for. You keep the car, but it will have a rebuilt or salvage title, which affects registration, insurance, and resale.
Frequently asked questions
How is an insurance total loss payout calculated in Canada?
The simple formula is: market value minus deductible minus salvage if you keep the car. The insurer determines market value by comparing your car to similar vehicles. Actual payouts depend on your policy, province, and the insurer's valuation.
What is a total loss in car insurance?
A total loss means the repair cost is not economical compared to the car's pre-accident value and salvage. Different insurers and provinces use different thresholds, and safety factors also matter. This tool shows the repair-to-value ratio without predicting the insurer's decision.
Can I keep my car after a total loss payout?
In many Canadian provinces, you can keep the written-off vehicle and receive a reduced payout. The insurer deducts the salvage value from your settlement. You then own a rebuilt or salvage-title vehicle, which may have registration and resale restrictions.
How do I look up my car's market value?
This tool lets you search current BC AutoTrader listings for similar vehicles. Enter year, make, model, and kilometres, and the tool pulls live asking prices. These are market comps, not official appraisals.
Is this calculator official?
No. It is an independent informational tool. It cannot guarantee a payout, predict whether your insurer will write off the vehicle, or substitute for a licensed appraisal.