A vehicle is treated as a total loss when the assessed repair cost reaches a proportion of its market value set by the insurer, or when it cannot be safely repaired. Settlement is then based on the vehicle's market value at the time of loss, less the excess and any deductions in the policy.
In more detail
Market value means the value of your vehicle immediately before the accident, not its original purchase price and not the replacement cost of a new model. Insurers usually reference recognised valuation data for the UAE market.
If the vehicle is financed, the settlement is normally paid towards the finance company's outstanding interest first, and any balance to you. Where the outstanding finance exceeds the settlement, the difference remains your responsibility unless a specific gap benefit applies.
Conditions and exceptions
- The threshold percentage at which a car is written off is an insurer decision and is not identical across the market.
- You may ask for the valuation basis and dispute it with evidence if you believe it is wrong.
Related pages
Important: The information on this page is general guidance about motor insurance in the UAE and is not a policy document or a guarantee of cover. Cover, benefits, exclusions, excess amounts and pricing differ between insurers and depend on your vehicle, driver profile and the policy wording issued to you. Always read the policy schedule and terms issued by the insurer before purchasing.