Total Loss Threshold by State

Article:
Appraisal Engine Inc
Version:
1.0

Reviewed by:
Rating:
5
On March 4, 2015
Last modified:August 12, 2017

Summary:

Total Loss Threshold by State. When is a vehicle declared a total loss.

The Total Loss Threshold is the dollar amount or percentage of value that triggers an automobile’s being declared a total loss by the insurance company.

total loss threshold graphic cars

This amount differs from state to state, please review the table below to learn which method your insurance carrier will use to determine if your vehicle is to be totaled.

Method 1: Percentage of FMV
This percentage is normally set by the state or the legislature. Most states have a 3/4 total loss ratio.
Cost of RepairFair Market ValueResult
$18,000$20,000 (80%)Car Totaled
$12,000$20,000 (60%)Car Repaired
Method 2: The total loss formula TLF
This is normally set by the carrier or a law that limits the carrier’s exposure to a claim by allowing them to pay the lesser of the two amounts below.
FMV – Salvage ValueCost of RepairResult
$20,000 – $4,000 = $16,000$18,000Car Totaled
$20,000 – $4,000 = $16,000$12,000Car Repaired

The salvage value is normally obtained by contacting salvage yard or soliciting a salvage bid from a salvage re-builder.

Insurance companies often auction off totaled cars at salvage auctions, example, IAA.

If you own the car free and clear (no liens), you have the right to buy-back the vehicle from the insurance company for the salvage value.

Other factors affecting the Total Loss decision:

  1. Vehicle safety if repaired
  2. Time to complete repair
  3. Scarcity of vehicle
  4. Diminished Value
  5. Loss of use
  6. The possibility of supplements

If you need professional help navigating your total loss claim, contact Tony Rached at Appraisal Engine by calling 1-800-667-2326.

 

AUTOMOBILE TOTAL LOSS THRESHOLD – 50 STATES

Unless a TL percentage is established by law, insurers will use the total loss formula.

Alabama75%
AlaskaTLF
ArizonaTLF
Arkansas70%
CaliforniaTLF
Colorado100%
ConnecticutTLF
DelawareTLF
Florida80%
GeorgiaTLF
HawaiiTLF
IdahoTLF
IllinoisTLF
Indiana70%
Iowa70%
Kansas75%
Kentucky75%
Louisiana75%
MaineTLF
Maryland75%
MassachusettsTLF
Michigan75%
Minnesota70%
MississippiTLF
Missouri80%
MontanaTLF
Nebraska75%
Nevada65%
New Hampshire75%
New JerseyTLF
New MexicoTLF
New York75%
North Carolina75%
North Dakota75%
OhioTLF
Oklahoma60%
Oregon80%
PennsylvaniaTLF
Rhode IslandTLF
South Carolina75%
South DakotaTLF
Tennessee75%
Texas100%
UtahTLF
VermontTLF
Virginia75%
WashingtonTLF
West Virginia75%
Wisconsin70%
Wyoming75%

Do you want to challenge what the insurance company is offering you? Start with a claim review.

Total Loss Threshold by State. When is a vehicle declared a total loss.

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