Total Loss Claims By State
Total Loss Thresholds
A total loss threshold is the point at which a vehicle’s repair costs become too expensive to be worthwhile, resulting in the vehicle being declared a total loss (or totaled). The cost of repairs is compared to how much the vehicle was worth right before the accident, or the vehicle’s actual cash value (ACV).
There are two main types of total loss thresholds used by different states:
- Simple percentage threshold: This percentage is how much of the vehicle’s actual cash value the repairs need to cost for the vehicle to be declared a total loss. The most common amount is 75%.
- “Total loss formula” (TLF): The TLF is a comparison of the vehicle’s actual cash value to the sum of its repair costs and salvage value (how much it would sell for in its current condition).
- For example, if a vehicle worth $10,000 needs repairs totaling $7,500, and it could be sold for $500 in salvage, the vehicle would not be declared a total loss because the repair cost plus the salvage value ($7,500 + $500) does not exceed the vehicle’s actual cash value ($10,000).
Total Loss Thresholds By State
75% Total Loss Threshold
Damage to vehicle is greater than 75% of fair retail value prior to damage. Vehicle is “salvage” when (1) frame or engine removed and not immediately replaced, or (2) when insurer has paid a total loss on vehicle. Insurer buys the vehicle from insured for the FMV of the salvage and then applies to the state for salvage title.
Total Loss Formula
Cost of repairing damage to the vehicle exceeds vehicle’s worth or insured value. No statutory definition of “salvage vehicle.” Vehicle is “wrecked vehicle” when so disabled that can’t be used for primary function without substantial repair or reconstruction. Insurance company which “totals” vehicle must mark the word “junk” on the title and surrender the title to the state. This is true for either an “actual total loss” or a “constructive total loss.”
Total Loss Formula
Insurer determines if it is uneconomical to repair vehicle. It then is a salvage vehicle
70% Total Loss Threshold
Damage to vehicle greater than 70% of fair retail value prior to damage or vehicle is water damaged.
Total Loss Formula
A vehicle is a total loss where the cost of repair exceeds the vehicle value prior to the repair of the vehicle. “Total Loss” means either of the following: (a) A vehicle, other than a non-repairable vehicle, that has been damaged to the extent the insurance company considers it uneconomical to repair, and is not repaired; or (b) A vehicle determined to be uneconomical to repair, for which a total loss payment has been made by an insurer, whether or not the vehicle is subsequently repaired, if prior to or upon making the payment, the insurer obtains the agreement of the claimant to the amount of the total loss settlement, and informs the client that, pursuant to subdivision (a) or (b) of § 11515, the total loss settlement must be reported to the DMV, which will issue a salvage certificate for the vehicle. California defines a salvaged vehicle as one that has been either totally destroyed or damaged beyond what the insurance company is willing to pay to fix it, so the owner never gets the vehicle repaired. Depending on its condition, one of several things may happen to the car. The first of these is that the title is exchanged for a Salvage Certificate issued by the DMV.
100% Total Loss Threshold
Cost of repairing vehicle exceeds retail fair market value. Retail value is determined by sources accepted by the insurance industry, which is usually when cost of repair exceeds market value.
100% Total Loss Threshold
Cost of repairing vehicle exceeds retail fair market value. Retail value is determined by sources accepted by the insurance industry, which is usually when cost of repair exceeds market value.
Total Loss Formula
Insurer must use NADA average and one additional approved source and constructive total loss is when cost to repair or salvage damage equals or exceeds the total value. Once declared “total loss” by insurer it is a “salvage vehicle.”
Total Loss Formula
Insurer determines if vehicle is a total loss. It is then transferred as “salvage vehicle.”
75% Total Loss Threshold
Damage to vehicle exceeds 75% of retail value prior to the damage. No salvage law in D.C.
Total Loss in Florida involves when and under what circumstances a salvage title is required. “Salvage” means a motor vehicle or mobile home which is a total loss. A vehicle is a total loss when: Insured Vehicle: When carrier pays the owner to replace the vehicle with one of like kind or when it makes payment upon theft of vehicle. Uninsured Vehicle: When the cost, at the time of loss, of repairing or rebuilding the vehicle is 80% or more of the cost of replacing the damaged motor vehicle with one of like kind., carrier can declare vehicle a total loss depending on whether they believe settling for total loss requires less money than cost of repair. It is a business decision. If insured and insurer agree to repair, rather than replace, vehicle is not total loss.
However, if actual cost to repair exceeds 100% of replacement cost, vehicle must be branded “Total Loss Vehicle.” Therefore, vehicle can be repaired up to 100% of ACV before branding of title is required by statute. The “80%” simply means that if the cost to repair a damaged vehicle is 80% of its value or more, then if the vehicle is declared a total loss by the insurance company, that the salvage title returned on the salvage will be a “Certificate of Destruction” in the insurer’s name and not eligible to be rebuilt. Insurance company does not have to “total” a vehicle if the costs of the repairs exceed 80% of ACV. The statute doesn’t require it, but most companies used it as a rule of thumb.
Total Loss Formula
Vehicle is damaged to the extent that its restoration to an operable condition requires replacing two or more major component parts.
Total Loss Formula
Insurer determines if a vehicle is repairable or whether it is a total loss, and must have material damage to vehicle’s frame, unitized structure, or suspension system, and cost of repairing damage exceeds market value.
Total Loss Formula
Cost of parts and labor minus the salvage value makes it uneconomical to repair or rebuild.
Total Loss Formula
Insurer determines when vehicle is salvage/total loss. Must not be from hail damage or a vehicle that is nine model years or older. Vehicle is “salvage” when insurer makes total loss payment.
70% Total Loss Threshold
Cost to repair vehicle is greater than 70% of fair market value prior to damage or the insurer determines it is impractical to repair and makes total loss payment.
70% Total Loss Threshold
Iowa used to define a salvage vehicle as one for which the cost of repair exceeds 50% of the FMV of the vehicle. But Iowa repair shops were losing money because of vehicles being totaled. As of 2021 and Senate File 230, Iowa now defines a “wrecked or salvage vehicle” as one “for which the cost of repair exceeds 70% of the fair market value of the vehicle.” Damage disclosure requirements kick in at 70%. If cost to repair vehicle is greater than 70% of ACV then the vehicle must have a damage disclosure on the title and it becomes “wrecked or salvage vehicle.” Practically speaking, salvage titles go hand-in-hand with the declaration of a total loss. Iowa law is silent with regard to a threshold at which a carrier must consider a vehicle a total loss. It is up to each carrier to determine at what point they will consider a vehicle to be a total loss.
75% Total Loss Threshold
Cost to repair vehicle is 75% more than the fair market value at the time immediately before it was wrecked.
75% Total Loss Threshold
Cost of parts and labor to rebuild vehicle to pre-accident condition exceeds 75% as set forth in NADA price guide.
75% Total Loss Threshold
Damage equivalent to 75% or more of the market value as determined by NADA
Total Loss Formula
Vehicle is “salvage” when insurer declares it a total loss or salvage title is issued. Owner transfers vehicle to insurer due to damage or owner determines it has no marketable value
75% Total Loss Threshold
Cost to repair vehicle exceeds 75% of the fair market value.
Total Loss Formula
Insurer determines if it is uneconomical to repair the vehicle and the vehicle is not repaired.
75% Total Loss Threshold
Cost to repair vehicle is 75% more than the fair market value at the time immediately before it was wrecked.
75% Total Loss Threshold
If cost of repair, including parts and labor, is between 75% and 91% of the actual cash value, then a salvage title is given. It then is a “distressed vehicle.”
80% Total Loss Threshold
Damage to late model vehicle (newer than six-years-old) or high value vehicle (over $5,000) exceeds 80% of its actual cash value.
Total Loss Formula
Vehicle cannot be more than ten-years-old, have a value of less than $1,500, or damage that requires replacement of five or few minor components. Also, applies to vehicle which requires replacement of more than five minor component parts according to insurer.
80% Total Loss Threshold
Vehicle less than six-years-old and if damaged exceeds 80% of the fair market value..
Total Loss Formula
Insurer determines if the vehicle is a total loss. It is “salvage vehicle” if insurer decides it is uneconomical to repair, considering parts and labor.
75% Total Loss Threshold
Late model vehicle damage exceeds 75% of the retail value at the time it was wrecked, damaged, or destroyed. “Late model vehicle” means a vehicle which has (a) a manufacturer's model year designation of, or later than, the year in which the vehicle was wrecked, damaged, or destroyed, or any of the six preceding years.
75% Total Loss Threshold
Late model vehicle damage exceeds 75% of the retail value at the time it was wrecked, damaged, or destroyed. “Late model vehicle” means a vehicle which has (a) a manufacturer's model year designation of, or later than, the year in which the vehicle was wrecked, damaged, or destroyed, or any of the six preceding years.
65% Total Loss Threshold
Vehicle damage exceeds 65% of the fair market value.
75% Total Loss Threshold
Cost for vehicle repair is 75% or more of its fair market value prior to being damaged.
Total Loss Formula
Insurer determines if it is “economically impractical” to repair vehicle or cost of repairs is higher than the market value of the vehicle.
Total Loss Formula
Insurer determines if it is uneconomical to repair vehicle.
75% Total Loss Threshold
Cost for repair of vehicle made in 1973 or older is 75% or more of retail value prior to being damaged by a nationally recognized compilation of retail values.
75% Total Loss Threshold
Cost for vehicle repair is 75% or more of its fair market value prior to being damaged. Any vehicle totaled by insurance company must have title and registration card marked, “Total Loss Claim.”
75% Total Loss Threshold
Vehicle damage exceeds 75% of retail value of vehicle determined by NADA. Glass and hail damage are excluded.
Total Loss Formula
Insurer determines if it is economically impractical to repair vehicle.
60% Total Loss Threshold
Cost to repair damage to vehicle exceeds 60% of fair market value.
80% Total Loss Threshold
Damage to vehicle is equal to or more than 80% of retail market value.
Total Loss Formula
Extent of repairs to vehicle would exceed the value of the repaired vehicle. Doesn’t include antique or classic cars.
75% Total Loss Threshold
Cost of repairing the vehicle exceeds 75% of the fair market value of the vehicle immediately preceding the accident, unless the owner provides written agreement to the contrary.
75% Total Loss Threshold
Cost of repairing the vehicle exceeds 75% of the fair market value of the vehicle.
Total Loss Formula
Insurer or self-insurer determines a total loss.
75% Total Loss Threshold
Damage to vehicle equal to or more than 75% of retail market value as determined by current published retail costs.
100% of Adjusted Costs of Repair*
*Costs of repair do not include cost of materials and labor for repainting the vehicle and sales tax on the total cost of repairs.
If total cost of repairs exceeds ACV of vehicle, then it is a salvage vehicle. A carrier may decide to total a vehicle when the damages are less than the actual cash value. Section 501.091(15) simply provides a damage threshold in which a vehicle will be considered totaled. Property is a “total loss” if a reasonably prudent uninsured owner, desiring to restore the property to its pre-loss condition, would not utilize that property for such restoration. Canal Ins. Co. v. Hopkins, 238 S.W.3d 549 (Tex. App. Tyler 2007). When an insured auto is so damaged that it would cost more to repair than to replace, it is usually deemed a total loss. Singleton v. Elephant Ins. Co., 953 F.3d 334 (5 th Cir. 2020).
Total Loss Formula
Insurer makes decision whether a vehicle is declared a non-repairable vehicle. Or if two or more major components suffer major damage.
Total Loss Formula
Insurer makes decision whether a vehicle (less than 10-years-old) is declared a total loss.
75% Total Loss Threshold
Cost to repair late model vehicle exceeds 75% of ACV prior to vehicle being damaged, then vehicle is issued a non-repairable certificate or a salvage certificate.
Total Loss Formula
Insurer determines whether cost of parts and labor plus salvage value has made it uneconomical to repair and vehicle must be more than six-years-old. “Total loss means that the insurer has determined that the cost of parts and labor, plus the salvage value, meets or exceeds, or is likely to meet or exceed, the “actual cash value” of the loss vehicle. Other factors may be considered in reaching the total loss determination, such as the existence of a biohazard or a death in the vehicle resulting from the loss.” Wash. Admin. Code § 284-30-320(18).
75% Total Loss Threshold
Cost to repair vehicle is greater than 75% of market value determined by a nationally accepted used car value guide.
70% Total Loss Threshold
Damage exceeding 70% of fair market value will render vehicle less than seven model years old a salvage vehicle. This only applies “If the vehicle is less than 7-years-old, is damaged by collision or other occurrence to the extent that the estimated or actual cost, whichever is greater, of repairing the vehicle exceeds 30% of its fair market value and was transferred to an insurer upon payment of an insurance claim.”
75% Total Loss Threshold
For vehicle to be in pre-accident condition, labor to rebuild and parts exceed 75% of ACV of vehicle.