# What Is a Total Loss?

Lucy Lazarony
November 3, 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.

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.

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.

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.

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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