First-Party Total Loss And Salvage Title Laws in All 50 States
Overview: Total Loss vs. Salvage
“Totaled” or “total loss” and “salvage” are related but distinct concepts. A total loss is a claims decision driven by the insurance policy and company practice: when it’s more economical (or safer) to pay out than repair. Salvage and title branding are governed by state law and administrative rules. A total loss is not automatically a salvage vehicle. Because each state has its own title-branding requirements, a carrier may declare a vehicle a total loss even if the damage sits below the state’s salvage title threshold. In such a case, the car can go to a salvage auction as a total, yet retain a clean title under state law if it did not meet the salvage threshold.First-Party Total Loss Claims
In first-party claims, an Economic Total Loss occurs when the sum of repair costs (including projected supplements), projected diminished resale value, and projected rental costs exceeds the vehicle’s pre-accident Actual Cash Value (ACV) minus the projected salvage proceeds. A Constructive Total Loss describes severe damage beyond repair. ACV is typically determined by comparing to similar vehicles for sale, consulting private databases (e.g., Kelley Blue Book), or hiring an appraiser. Some insurers add sales tax, title, and registration fees. Companies may have internal thresholds (e.g., 51% to 80% of value) guided by policy language.Typical Policy Language Examples
Limit of Liability: The lesser of:
- The actual cash value of the stolen or damaged property;
- The amount necessary to repair or replace the property with other of like kind and quality; or
- The amount stated in the Declarations of this policy.
We will pay the cost to physically repair the auto or any of its parts up to the actual cash value of the auto or any of its parts at the time of the collision. The most we will pay will be either the actual cash value of the auto or the cost to physically repair the auto, whichever is less. We will, at our option, repair the auto, repair or replace any of its parts, or declare the auto a total loss. If the repair of a damaged part will impair the operational safety of the auto, we will replace the part.
When Insurers Consider a Vehicle a Total Loss
- The damage is so severe the vehicle cannot be safely repaired;
- The cost to repair exceeds the vehicle’s value; or
- State regulations require declaring the vehicle a total loss.
Payments, Lienholders & Gap Insurance
After a total loss, the insurer pays the ACV (plus applicable taxes/fees per policy), less any deductible. Payment may go to the owner, lessor, or lienholder depending on ownership and policy. If the settlement is less than the loan balance, the insured remains responsible for the difference. Gap insurance can cover the difference between the depreciated value and the outstanding loan for original borrowers/leaseholders. Note: A chart titled “Recovery of Sales Tax After Vehicle Total Loss In All 50 States” is referenced here.Practical Considerations & Examples
Even when repair costs are below ACV, carriers may still total a vehicle (e.g., $3,000 repairs on a $4,000 car) due to overall economics or a theft that is not recovered. Typically, the insurer takes possession and title. If the owner wants to retain the vehicle, the carrier pays ACV minus the deductible and salvage value, and the owner handles repairs and any title issues.Total Loss Thresholds, Title Branding & Resale
“Total loss” decisions interact with state salvage/title branding laws but are not identical. After a total, carriers usually transfer title, sell to a salvage buyer, and the vehicle may later be repaired and resold. Many states require a brand (e.g., “salvage” or “rebuilt salvage”) when the damage meets statutory criteria. In some states, insureds cannot keep total loss vehicles; where permitted, the payout is ACV minus deductible and salvage. Definitions of “salvage vehicle” vary by state and can include severe damage totals or even unrecovered thefts. Whether an insurer or the state must declare the total loss also varies. To be operated again, most salvaged vehicles must be repaired, inspected, and re-branded as “rebuilt salvage.”Title Washing & Inter-State Variability
Brands are intended to inform future buyers, but unscrupulous actors may attempt to “wash” titles by exploiting differences between state systems. There are no national titling laws, and re-registration across states can sometimes remove brands. Vehicle history providers report significant volumes of title washing nationally.States Using Salvage Titles for Certain Thefts
A small number of states require a salvage title if a vehicle is stolen and not recovered within a set period (e.g., 21 days). States noted include: Arizona, Florida, Georgia, Illinois, Maryland, Minnesota, New Jersey, New Mexico, New York, Oklahoma, Oregon. Not all total losses produce a branded title—for example, where an insurer’s definition differs from DMV criteria or where a vehicle is self-insured (e.g., fleets).NMVTIS Reporting
The National Motor Vehicle Title Information System (NMVTIS) allows titling agencies to verify paper titles against electronic data from the issuing state. Insurers must report salvage and total loss vehicles to NMVTIS. Federal definitions do not supersede state titling laws, but a state “total loss” determination triggers the NMVTIS reporting requirement. States are not required to use NMVTIS data when issuing titles.Total Loss Threshold (TLT)
TLT is the dollar amount or percentage of ACV at which a vehicle is considered a total loss for state salvage-title purposes. Carriers calculate a Total Loss Ratio (repair cost ÷ ACV) and compare it to the state’s TLT. Thresholds vary by state (e.g., New York at 75%, Texas at 100%).Example: Wisconsin Statutes
Wis. Stat. § 342.065(1)(c): If the interest of an owner in a vehicle titled in this state is not transferred upon payment of an insurance claim that, including any deductible, exceeds 70% of fair market value, the insurer shall, within 30 days, notify the department that the vehicle meets the statutory definition of a salvage vehicle. Wis. Stat. § 340.01(55g): “Salvage vehicle” means a vehicle less than seven years old… damaged to the extent that the cost to repair exceeds 70% of its fair market value.Many states include exceptions for older vehicles. Some states also consider rental costs when determining a constructive total loss.
Total Loss Formula (TLF)
Where no statutory TLT applies, insurers may use a policy-based formula (not lower than any applicable TLT): Cost of Repair + Salvage Value > Actual Cash Value (ACV) If repair costs plus salvage value exceed ACV, the vehicle can be declared a total loss.Illustrative Example
A 2002 Toyota Echo (185,000 miles) has an ACV of $2,800. Estimated repairs are $2,000 (damage ratio 72%). This would be a total in Arkansas (TLT 70%) but not in Florida (TLT 80%). In Illinois (using TLF), if salvage value is $700, then $2,000 + $700 = $2,700 < $2,800, so it would not be totaled under TLF. Insurers often rely on licensed appraisers, and ACV tools (e.g., CCC Information Services) that are not publicly available.50-State Chart
The preceding introduction and the following chart aim to reduce confusion about when a car is considered “totaled” in a first-party insurance claim and when it is rendered a “salvage vehicle” triggering specific duties under state law. However, claims professionals should always consult company rules, applicable policy language, and legal counsel before making total-loss determinations. This chart is for informational purposes only and should not be construed as legal advice. It summarizes state laws dealing with first-party insurance claims involving total losses and the points at which a salvage title or other branding is required by state motor vehicle title statutes. Note: The chart does not address tort damages owed by a third-party at fault (tortfeasor) whose negligence caused the vehicle owner’s loss.| State | Salvage / Total Loss Rule | Statutory Authority | Comments |
|---|---|---|---|
| Alabama | Total Loss Threshold (75%) For both first-party insurance claim and salvage vehicles. A salvage, also known as total loss, vehicle is when a total loss occurs and an insurance company pays a claim for a vehicle that is damaged more than 75% of FMV. | Ala. Stat. § 32-8-87(d) Ala. Admin. Code r. 482-1-125-.08 |
A salvage vehicle (total loss) occurs when an insurance company or any other person pays or makes other monetary settlement to a person when a vehicle is damaged and the damage to the vehicle is greater than or equal to 75% of the fair market value of the vehicle prior to the 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. |
| Alaska | Total Loss Formula (TLF) A vehicle is a total loss when the ACV is equal to or less than the cost of repairs plus the salvage value. |
Duty of insurer when obtaining title to an unrepairable vehicle: 2 AAC 92.170 AK DMV – Salvage Vehicle Titles | The cost of repairing damage to the vehicle exceeds the vehicle’s worth or insured value. No explicit statutory definition of “salvage vehicle.” Insurers that “total” a vehicle must mark “junk” on the title and surrender it to the state—applies to either an “actual total loss” or a “constructive total loss.” |
| Arizona | Total Loss Formula (TLF) A vehicle is a total loss when the vehicle’s ACV is equal to or less than the cost of repairs plus the salvage value. |
Salvage certificate & definitions: A.R.S. § 28-2091 Restored salvage process: A.R.S. § 28-2095 | The insurer determines if it is uneconomical to repair the vehicle; such vehicles are handled as salvage under Title 28. |
| Arkansas | Total Loss Threshold (70%) A vehicle is a total loss when the cost of repairs plus the salvage value is at least 70% of the vehicle’s actual cash value. |
Definition of “salvage vehicle” (≥70% or water-damaged): A.C.A. § 27-14-2301(6)(B) | Damage ≥70% of fair retail value prior to damage or water damage triggers salvage handling. |
| California | Total Loss Formula (TLF) A vehicle is a total loss when the vehicle’s ACV is equal to or less than the cost of repairs plus the salvage value. If the insurer declares a total loss, DMV can issue a Salvage Certificate. |
DMV Salvage Certificate procedures: CA DMV – Total Loss/Salvage Veh. Code § 11515 (DMV manual) Case reference: Martinez v. Enterprise Rent-A-Car, 13 Cal. Rptr. 3d 857 (Cal. App. 2004) | A “salvaged” vehicle is one declared a total loss by an insurer; DMV issues a Salvage Certificate. Reporting requirements apply when a total loss payment is made. Depending on condition, title may be exchanged for a Salvage Certificate. |
| Colorado | Total Loss Threshold (100%) Functionally, repairs that exceed retail fair market value (RFMV) constitute salvage (i.e., ~100% threshold). |
Definition of “salvage vehicle” (repairs exceed RFMV): C.R.S. § 42-6-102(17)(a)(I) Guidance: CO DMV – Salvage Vehicles | Retail FMV is determined by sources accepted by the insurance industry; when repairs exceed RFMV, the vehicle is a “salvage vehicle.” |
| Connecticut | Total Loss Formula (TLF) Insurer must calculate the total loss settlement per statute and disclose valuation sources. |
Calculation of settlement amount on totaled vehicles: C.G.S. § 38a-353 OLR summary: CT OLR 2017-R-0165 | Settlement must use a recognized valuation methodology; statute requires disclosure of sources (e.g., NADA and at least one additional source in practice). |
| Delaware | Total Loss Formula (TLF) Insurer determines whether a vehicle is a total loss; upon total loss settlement, vehicle is transferred as salvage. |
Transfer for salvage; insurer & owner obligations: 21 Del. C. Ch. 25 21 Del. C. § 2512 | After a total loss settlement, title is sent to the DMV and a Salvage Certificate is issued (owners may retain salvage under conditions). |
| Washington DC | Total Loss Threshold (75%) Damage to vehicle exceeds 75% of retail value prior to the loss. | D.C. Code § 50-1331.01(12)(A) | Damage exceeding 75% of pre-damage retail value constitutes total loss. No specific “salvage law” applies in D.C., but insurers generally handle titles consistent with total loss thresholds. |
| Florida | Total Loss in Florida Insured Vehicle: When the insurer pays the owner to replace the vehicle with one of like kind or upon theft settlement. | F.S.A. § 319.30(1)(t) F.S.A. § 319.30(3)(a)(1)(a)b | A vehicle may be repaired up to 100% of ACV before title branding applies. Vehicles exceeding 80% (uninsured) or 90% (certain late-model) are branded “Total Loss Vehicle.” Salvage titles read “Certificate of Destruction.” Most insurers apply the 80% threshold as standard practice. |
| Georgia | Total Loss Formula (TLF) When a vehicle is totaled per § 40-3-2, the insurer must pay the vehicle’s pre-loss ACV. | Ga. Code Ann. § 40-3-2(11) | A vehicle becomes salvage when repair requires replacement of two or more major components or when declared a total loss by an insurer. Cosmetic damage only does not trigger salvage classification. |
| Hawaii | Total Loss Formula (TLF) Insurer determines whether a vehicle is repairable or a total loss based on material frame or structural damage. | Haw. Rev. Stat. § 286-48 | Vehicle is declared a total loss when cost of repairing frame, structure, or suspension exceeds its market value. |
| Idaho | Total Loss Formula (TLF) A vehicle is a total loss when the cost of parts and labor plus salvage value makes it uneconomical to repair or rebuild. | Idaho Code § 49-123(2)(o) | Cost of repairs plus labor exceeding the ACV triggers total loss classification under state law. |
| Illinois | Total Loss Formula (TLF) Total loss payment by the insurer makes the vehicle salvage; owner may retain title under certain hail or age exceptions. | 625 I.L.C.S. § 5/3-117.1(b) | Insurer determines salvage status when total loss payment is made. Vehicle is “salvage” unless nine model years or older with non-hail cosmetic damage. |
| Indiana | Total Loss Threshold (70%) Cost of repair exceeds 70% of fair market value before damage or insurer deems vehicle impractical to repair. | I.C. § 9-22-3-3 | Insurer declares total loss when cost to repair exceeds 70% of FMV or vehicle is not practical to repair. |
| Iowa | Total Loss Threshold (70%) Vehicle is a total loss when cost of repairs exceeds 70% of ACV. | I.C.A. § 321.52(4)(e) | Iowa law defines “wrecked or salvage vehicle” where repair costs exceed 70% of FMV. Threshold replaced older 50% rule; disclosure required on title. |
| Kansas | Total Loss Threshold (75%) Vehicle considered a total loss when cost of repairs is 75% or more of fair market value. | K.S.A. § 8-197(b)(2)(B) | When repair costs ≥75% of FMV, vehicle must be branded as salvage. |
| Kentucky | Total Loss Threshold (75%) Cost of repair plus labor exceeds 75% of pre-loss ACV per NADA standards. | K.R.S. § 186A.520(1)(a) | Cost to rebuild to pre-accident condition >75% triggers total loss. Applies to vehicles under ten model years old. |
| Louisiana | Total Loss Threshold (75%) Damage equals or exceeds 75% of market value. | La. R.S. § 32:702(13) | Total loss declared when damage equals or exceeds 75% of NADA market value. |
| Maine | Total Loss Formula (TLF) Vehicle is declared salvage when insurer determines it a total loss or if title branding applies. | 29-A M.R.S. § 602(19) | Vehicle is “salvage” when insurer declares total loss or owner transfers to insurer for no market value. Salvage title is then issued. |
| Maryland | Total Loss Threshold (75%) Cost to repair vehicle exceeds 75% of fair market value. | Md. Code, Transportation § 11-152(a)(1) | Statutory definition of “salvage vehicle” uses a 75% threshold of FMV. |
| Massachusetts | Total Loss Formula (TLF) Insurer determines if it is uneconomical to repair and the vehicle is not repaired. | M.G.L. c. 90D § 1 | Total loss guided by claims practice and definitions; separate salvage title procedures apply. |
| Michigan | Total Loss Threshold (75%) If repair cost (parts & labor) is between 75% and 91% of ACV, title branded as “distressed vehicle.” | M.C.L.A. § 257.217c(2)(b)(i) | Michigan has unique “distressed vehicle” branding for certain 75–91% repair ratios. |
| Minnesota | Total Loss Threshold (80%)* *For late-model (≤6 years) or high-value (>$5,000) vehicles where damage ≥80% of ACV. | M.S.A. § 168A.151(b)(c)(3) | Special thresholds for newer/high-value vehicles; age/value carve-outs apply. |
| Mississippi | Total Loss Formula (TLF) Insurer determines if it is uneconomical to repair. | M.C.A. § 63-21-33 | Salvage designation and procedures handled under title statutes; insurer judgment on TLF. |
| Missouri | Total Loss Threshold (80%) Vehicles <6 years old with damage >80% of FMV. | Mo. Rev. Stat. § 301.010(51)(a) | Age-based applicability; branding tied to 80% of FMV. |
| Montana | Total Loss Formula (TLF) Insurer determines if vehicle is total loss; “salvage vehicle” when uneconomical to repair. | Mont. Code Ann. § 61-3-211 | Salvage status based on insurer’s determination considering parts and labor. |
| Nebraska | Total Loss Threshold (75%) Late-model vehicle: damage exceeds 75% of retail value at time of loss; or owner voluntarily brands. | Neb. Rev. Stat. § 60-171(7)(a) | “Late model vehicle” defined by model year window; voluntary branding option exists. |
| Nevada | Total Loss Threshold (65%) Vehicle damage exceeds 65% of FMV. | N.R.S. § 487.790(1)(b) | Lower statutory threshold compared to many states (65%). |
| New Hampshire | Total Loss Threshold (75%) Repair cost is ≥75% of FMV prior to damage. | N.H. Rev. Stat. Ann. § 261:22(VI)(b) | Title branding tied to 75% threshold; DMV procedures follow. |
| New Jersey | Total Loss Formula (TLF) Insurer may deem repair “economically impractical” or where repair cost exceeds market value. | N.J.S.A. § 13:21-22.3 | Claims and salvage regulations administered by MVC/DOI; TLF used in practice. |
| New Mexico | Total Loss Formula (TLF) Insurer determines if it is uneconomical to repair. | N.M.S.A. § 66-1-4.16(C) | Statutory definitions and unfair claims practices interplay with salvage designation. |
| New York | Total Loss Threshold (75%) For older vehicles (1973 or earlier) or where repair ≥75% of retail value by recognized compilation. | 15 NYCRR § 20.20(c)(ii) | New York uses a 75% threshold in certain contexts; confirm applicability by model year and DMV rules. |
| North Carolina | Total Loss Threshold (75%) Repair cost ≥75% of FMV before damage; totaled vehicles must have title/registration marked. | N.C.G.S.A. § 20-71.3(d) | Administrative marking “Total Loss Claim” required for certain totaled vehicles. |
| North Dakota | Total Loss Threshold (75%) Damage exceeds 75% of retail value per NADA; glass and hail excluded. | N.D.C.C. § 39-05.2-02 11 N.D. Admin. Code 04.0418 | Uses retail value yardstick; some damage types excluded from threshold calc. |
| Ohio | Total Loss Formula (TLF) Insurer determines if it is economically impractical to repair. | Ohio Rev. Code Ann. § 4505.11(C)(1) | Claims-handling and salvage title rules coordinated under ORC and Admin. Code. |
| Oklahoma | Total Loss Threshold (60%) Cost to repair damage exceeds 60% of FMV. | 47 O.S. § 1111(C)(1) | One of the lowest thresholds nationally; branding required at ≥60%. |
| Oregon | Total Loss Threshold (80%) Damage equal to or more than 80% of retail market value. | O.R.S. § 801.527(3) | DMV branding rules triggered at ≥80% damage ratio. |
| Pennsylvania | Total Loss Formula (TLF) Repairs would exceed value of the repaired vehicle; excludes antique/classic vehicles. | 75 Pa. Cons. Stat. Ann. § 102 | Salvage/junk classifications defined by extent-of-damage; special carve-outs for antique/classic. |
| Rhode Island | Total Loss Threshold (80%) Insurer may not total if cost to rebuild is <80% of pre-loss FMV unless owner consents (written). Consumer may elect “total loss” between 75%–80% with consent. | R.I. Gen. Laws § 27-9.1-4 R.I.G.L. § 31-46.1-1 (Salvage Vehicle Statute) | Two salvage classes: A (extensive damage, parts only) and B (repairable). Insurers evaluate/classify salvage. |
| South Carolina | Total Loss Threshold (75%) Cost of repair exceeds 75% of FMV. | S.C. Code Ann. § 56-19-480(G) | Repair costs ≥75% of market value classify the vehicle as a total loss for titling and insurance purposes. |
| South Dakota | Total Loss Formula (TLF) The insurer or self-insurer determines total loss status. | S.D.C.L. § 32-3-51.19 | South Dakota law leaves the total loss determination to insurer judgment when repair costs exceed reasonable value. |
| Tennessee | Total Loss Threshold (75%) Repair cost ≥75% of retail market value. | T.C.A. § 55-3-211(9)(A) | Insurer must report and brand title when repair exceeds 75% of market value; applies to current retail costs. |
| Texas | Total Loss Threshold (100%) Costs of repair (excluding paint, labor, and tax) ≥100% of adjusted repair costs. | Tex. Transp. Code § 501.091(15) | If total repair costs exceed ACV, vehicle is deemed salvage. Courts define total loss as when a prudent owner wouldn’t restore to pre-loss condition. |
| Utah | Total Loss Formula (TLF) Insurer decides whether a vehicle is repairable or non-repairable based on component damage. | U.C.A. § 41-1a-1005 | If two or more major components are damaged, vehicle is considered non-repairable; insurer defines threshold. |
| Vermont | Total Loss Formula (TLF) Applies to vehicles under 10 years old. Insurer determines total loss status. | Vt. Stat. Ann. Tit. 23, § 2001(14) | Vehicles less than 10 years old subject to salvage designation upon insurer declaration. |
| Virginia | Total Loss Threshold (75%) Repair costs ≥75% of ACV for late-model vehicles. | Va. Code Ann. § 46.2-1602.1 | Vehicle branded non-repairable or salvage when damage exceeds 75% of ACV prior to loss. |
| Washington | Total Loss Formula (TLF) Insurer determines uneconomical repair considering parts, labor, and salvage value. | R.C.W.A. § 46.04.514 Wash. Admin. Code § 284-30-320(18) | “Total loss” includes when repair + salvage ≥ ACV. Biohazard/death factors may also apply in loss evaluation. |
| West Virginia | Total Loss Threshold (75%) Repair costs exceed 75% of FMV based on used-car guides. | W. Va. St. § 17A-4-10(a) | Vehicle must be branded salvage when damage exceeds 75% of retail market value at time of loss. |
| Wisconsin | Total Loss Threshold (70%) Applies to vehicles ≤7 years old where damage ≥70% of FMV. | Wis. Stat. § 342.06(1)(hr) Wis. Stat. § 342.065(1)(c) | 70% threshold applies to newer vehicles; excludes vehicles >7 years old or with only minor collision damage. |
| Wyoming | Total Loss Threshold (75%) Repair and labor costs exceed 75% of ACV. | Wyo. Stat. § 31-2-106(v) | Vehicles where restoration exceeds 75% of ACV are deemed total losses for titling and insurance purposes. |
Disclaimer: We make every effort to keep this information accurate and up to date. However, insurance laws can change, and interpretations may vary by case. Before taking action, we strongly recommend consulting with a qualified attorney or speaking with your insurance adjuster to confirm how Diminished Value laws apply to your specific situation.
Why Would I Need a Total Loss Appraisal?
When your vehicle is declared a “total loss,” your insurance company determines its fair market value before the accident — often using their own valuation software like CCC or Mitchell. Unfortunately, these valuations can be hundreds or even thousands of dollars lower than what your vehicle is truly worth.
A certified total loss appraisal helps you:
- Ensure a fair payout — challenge lowball insurance offers backed by independent market data.
- Protect your equity — recover the true market value of your vehicle before the loss.
- Resolve disputes quickly — use your right under the Appraisal Clause in most policies.
Learn how state laws define total loss thresholds in your area using our 50-state total loss chart.
SnapClaim helps you obtain a certified total loss appraisal report accepted by insurance companies, attorneys, and courts nationwide.
Who Pays for a Total Loss Appraisal?
In most cases, your insurance company pays the settlement based on their valuation — but you have the right to dispute it.
- First-party claims: Filed through your own policy after a total loss (collision or comprehensive coverage). You can invoke your Appraisal Clause if you disagree with their offer.
- Third-party claims: Filed against another driver’s insurer when the other party is at fault.
If both sides can’t agree, each selects an independent appraiser. If the two appraisers disagree, a neutral umpire makes the final value determination.
SnapClaim makes this process easy by connecting you with appraisers and preparing complete documentation for you.
Is There a Deadline to Dispute a Total Loss Offer?
Yes. While your insurance policy doesn’t always set a specific deadline, your state law may limit how long you have to challenge a settlement or file legal action.
- Typical: 1–3 years depending on your state and policy type.
- Important: You should dispute your total loss valuation before accepting or cashing the insurance check.
Find your state’s total loss threshold and relevant rules in our Total Loss Laws by State guide.
How Do I Prove My Car’s True Value?
To dispute your insurer’s offer, you’ll need credible, data-supported evidence of your vehicle’s fair market value. SnapClaim helps you assemble a complete appraisal package with:
- Certified Appraisal Report – Independent valuation using comparable sales and condition adjustments.
- Vehicle History & Options – Verified features, mileage, and upgrade documentation.
- Comparable Market Listings – Recent local listings for identical vehicles.
- Expert Appraiser Review – Every report reviewed before release.
- Dispute Support – Optional letter to submit directly to your insurance adjuster.
This complete documentation strengthens your negotiation power — and helps you recover the fair market value your vehicle deserves.
Frequently asked questions:
- What does it mean when my car is declared a total loss?
A vehicle is considered a total loss when the cost to repair it equals or exceeds a certain percentage of its fair market value before the accident. Each state has its own total loss threshold or formula, often between 65% and 80%.
- How do I know if my insurance company’s total loss offer is fair?
Insurance companies often use valuation software like CCC or Mitchell that may undervalue your car. A certified total loss appraisal compares real market data and ensures your payout reflects your car’s true value.
- What is a total loss appraisal report?
A total loss appraisal report is an independent, data-backed valuation prepared by a licensed appraiser. It includes comparable listings, condition adjustments, and fair market value calculations to support your claim.
- When should I get a total loss appraisal?
You should request an appraisal immediately after your insurer declares your vehicle a total loss—before you accept or cash their settlement check. This allows you to dispute undervalued offers.
- How does the appraisal clause work?
Most insurance policies include an Appraisal Clause that allows you to challenge your insurer’s valuation. You hire an independent appraiser, they hire theirs, and if the two can’t agree, a neutral umpire determines the final value.
- Who pays for the total loss appraisal?
You typically pay for your own independent appraisal, and your insurer pays for theirs. If the appraisal clause is invoked and an umpire is needed, the cost is usually split evenly.
- What information do I need to order a total loss appraisal report?
You’ll need your vehicle’s VIN, mileage, trim level, accident date, repair estimate (if any), and your insurer’s settlement offer. SnapClaim uses this information to generate an accurate market-based valuation.
- How long does a total loss appraisal take?
Most SnapClaim total loss appraisal reports are completed within 1 business day once the necessary information is provided.
- Can I still get an appraisal if I already accepted my insurance payout?
Once you accept or cash the settlement check, you usually waive your right to dispute the value. It’s best to order a total loss appraisal before signing or accepting payment.
- What if my car was wrongfully declared a total loss?
You can request an independent review. Sometimes insurers total a car prematurely to avoid repair costs. A SnapClaim appraisal can determine if your vehicle truly met your state’s total loss threshold.
- How is the fair market value (FMV) of my car determined?
FMV is based on your vehicle’s pre-accident condition, mileage, options, location, and comparable listings for similar vehicles recently sold in your region.
- Does the total loss threshold vary by state?
Yes. Each state has its own rule defining when a vehicle is considered a total loss—some use a percentage (like 75%), while others use a formula. You can check your state’s law in our state-by-state chart.
- What happens after I order a total loss appraisal from SnapClaim?
After you submit your vehicle details, our licensed appraiser prepares a full valuation report backed by market data and comparable sales. You’ll receive a certified PDF report and optional demand letter to share with your insurer.
- Can I use a SnapClaim appraisal in court or arbitration?
Yes. SnapClaim total loss appraisal reports are court-ready and meet insurance and legal standards for fair market valuation, making them admissible in negotiations, arbitration, or litigation.
- How much does a total loss appraisal cost?
SnapClaim’s certified total loss appraisal reports start at $350 and include a full market analysis, comparable listings, and a refund guarantee if your extra recovery is less than $1,000.
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