What Is a Total Loss?

Fran
Lucy Lazarony
October 1, 2020

Sometimes a car cannot be fixed or repaired. Sometimes a damaged car is a total loss. An insurance company may decide your wrecked car is a total loss and cannot be repaired safely or the repairs would cost more than the car is worth. There are state laws requiring insurance companies to call a damaged vehicle a total loss based on the amount of damage to the vehicle. These damage amounts are often called total loss thresholds.

What Is a Total Loss Threshold?

Total loss threshold is calculated by dividing the car’s repair cost by its actual cash value. Let’s say a car is $8,500 to fix and the actual cash value is $10,000. The total loss threshold for the car is 85 percent, which is 8,500 divided by 10,000.

Many states use something called a total loss formula when determining what makes a totaled car in their state. This formula states the cost of repairs plus scrap value of the car must equal or exceed the car’s pre-accident value.

Total Loss Thresholds in the States

Here is a look at the total loss threshold for each of the 50 states and the District of Columbia.

Alabama

In Alabama, when damage to a car is equal to or greater than 75 percent of the value of the car, it is considered a total loss.

Alaska

In Alaska, the total loss formula is used to determine if a damaged car is a total loss.

Arizona

In Arizona, the total loss formula is used when deciding if a wrecked car is a total loss.

Arkansas

In Arkansas, when damage to a vehicle is equal to or greater than 70 percent of the value of the vehicle then it is considered a total loss.

California

In California, the total loss formula is used when evaluating whether a damaged vehicle is a total loss.

Colorado

In Colorado, when damage to a vehicle is equal to 100 percent of the value of the vehicle, the vehicle is considered a total loss.

Connecticut

In Connecticut, the total loss formula is used for determining whether a damaged car is a total loss.

Delaware

In Delaware, the total loss formula is used when determining if a wrecked car is a total loss.

Florida

In Florida, when damage to a car is equal to or greater than 80 percent of the value of the car, the car is considered a total loss.

Georgia

In Georgia, the total loss formula is used to evaluate whether a severely damaged car is a total loss.

Hawaii

In Hawaii, the total loss formula is used to determine whether a wrecked car is a total loss.

Idaho

In Idaho, the total loss formula is used for calculating whether a damaged car is a total loss.

Illinois

In Illinois, the total loss formula is used when evaluating whether a wrecked car is a total loss.

Indiana

In Indiana, when damage to a vehicle is equal to or greater than 70 percent of the value of the car, the car is considered a total loss.

Iowa

In Iowa, when damage to a car is equal to or greater than 50 percent of the value of the car then the car is totaled.

Kansas

In Kansas, when damage to a vehicle is equal to or greater than 75 percent of the value of the vehicle, it is considered a total loss.

Kentucky

In Kentucky, when damages to a car are equal to or greater than 75 percent of the value of the car than the car is considered totaled.

Louisiana

In Louisiana, when a car’s damages are equal to or greater than 75 percent of the value of the car then the car is considered to be a total loss.

Maine

In Maine, the total loss formula is used when evaluating whether a damaged car is a total loss.

Maryland

In Maryland, when the damages to a vehicle are equal to or greater than 75 percent of the value of the vehicle then the vehicle is totaled.

Massachusetts

In Massachusetts, the total loss formula is used to determine whether a damaged car is a total loss.

Michigan

In Michigan, when damages to a vehicle are equal to or greater than 75 percent of the value of the vehicle, the vehicle is considered to be a total loss.

Minnesota

In Minnesota, when damage to a car is equal to or greater than 70 percent of the value of the car, the car is a total loss.

Mississippi

In Mississippi, the total loss formula is used when evaluating whether a wrecked car is a total loss.

Missouri

In Missouri, when damages to a car are equal to or greater than 80 percent of the value of the car, the car is a total loss.

Montana

In Montana, the total loss formula is used when determining whether a wrecked car is a total loss.

Nebraska

In Nebraska, when damage to a vehicle is equal to or greater than 75 percent of the value of the car, the car is considered a total loss.

Nevada

In Nevada, when damages to a car are equal to or greater than 65 percent of the value of the car, the car is totaled.

New Hampshire

In New Hampshire, when damage to a vehicle is equal to or greater than 75 percent of the value of the vehicle, the vehicle is considered totaled.

New Jersey

In New Jersey, the total loss formula is used to determine whether a damaged vehicle is a total loss.

New Mexico

In New Mexico, the total loss formula is used to calculate whether a severely damaged vehicle is a total loss.

New York

In New York, when damages to a vehicle are equal to or greater than 75 percent of the value of the vehicle, the vehicle is considered a total loss.

North Carolina

In North Carolina, when damage to a car is equal to or greater than 75 percent of the car’s value, the car is a total loss.

North Dakota

In North Dakota, when damages to a vehicle are equal to or greater than 75 percent of the vehicle’s value, the vehicle is considered to be totaled.

Ohio

In Ohio, the total loss formula is used to evaluate whether a very damaged vehicle is a total loss.

Oklahoma

In Oklahoma, when damage to a car is equal to or greater than 60 percent of the car’s value, the car is considered a total loss.

Oregon

In Oregon, when damages to a vehicle are equal to or greater than 80 percent of the vehicle’s value, the vehicle is totaled.

Pennsylvania

In Pennsylvania, the total loss formula is used to calculate whether a wrecked car is a total loss.

Rhode Island

In Rhode Island, the total loss formula is used to determine whether a very damaged car is a total loss.

South Carolina

In South Carolina, when damage to a car is equal to or greater than 75 percent of the car’s value, the car is considered to be totaled.

South Dakota

In South Dakota, the total loss formula is used to determine if a wrecked car is a total loss.

Tennessee

In Tennessee, when damages to a vehicle are equal to or greater than 75 percent of the value of the car, the car is a total loss.

Texas

In Texas, when damage to a car is equal to 100 percent of the value of the car, the car is considered totaled.

Utah

In Utah, the total loss formula is used when evaluating whether a severely damaged car is a total loss.

Vermont

In Vermont, the total loss formula is used when determining whether a wrecked car is totaled.

Virginia

In Virginia, when damages to a car are equal to or greater than 75 percent of the car’s value, the car is totaled.

Washington

In Washington, the total loss formula is used to evaluate whether a damaged car is a total loss.

West Virginia

In West Virginia, when damage to a vehicle is equal to or greater than 75 percent of a car’s value, the car is considered a total loss.

Wisconsin

In Wisconsin, when damages to a car are equal to or greater than 70 percent of a car’s value, the car is totaled.

Wyoming

In Wyoming, when damage to a vehicle is equal to or greater than 75 percent of the value of the vehicle, the vehicle is totaled.

Washington D.C

In Washington, D.C., when damages to a car are equal to or greater than 75 percent of the car’s value, the car is a total loss.

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