Total Loss Guide
Total Loss Threshold by State
When is a car declared a total loss? It depends on your state's total loss threshold — the point where repair costs make the insurer write the car off and pay its actual cash value instead. Below is the threshold rule we track for every U.S. state. Select your state for the full details, local laws, and average payouts.
| State | Total Loss Threshold Rule | SOL (yrs) |
|---|---|---|
| Alabama | If repair costs exceed 75% of the vehicle's actual cash value | 2 |
| Alaska | Total Loss Formula (Repair + Salvage > ACV) | 2 |
| Arizona | Total Loss Formula (Repair + Salvage > ACV) | 2 |
| Arkansas | If repair costs exceed 70% of the vehicle's actual cash value | 3 |
| California | Total Loss Formula (Repair + Salvage > ACV) | 3 |
| Colorado | 100% of the vehicle's actual cash value | 3 |
| Connecticut | Total Loss Formula (Repair + Salvage > ACV) | 2 |
| Delaware | Total Loss Formula (Repair + Salvage > ACV) | 2 |
| District of Columbia | If repair costs exceed 75% of the vehicle's actual cash value | 3 |
| Florida | If repair costs exceed 80% of the vehicle's actual cash value | 4 |
| Georgia | If repair costs exceed 75% of the vehicle's actual cash value | 4 |
| Hawaii | Total Loss Formula (Repair + Salvage > ACV) | 2 |
| Idaho | Total Loss Formula (Repair + Salvage > ACV) | 3 |
| Illinois | Total Loss Formula (Repair + Salvage > ACV) | 5 |
| Indiana | If repair costs exceed 70% of the vehicle's actual cash value | 2 |
| Iowa | If repair costs exceed 70% of the vehicle's actual cash value | 5 |
| Kansas | If repair costs exceed 75% of the vehicle's actual cash value | 2 |
| Kentucky | If repair costs exceed 75% of the vehicle's actual cash value | 2 |
| Louisiana | If repair costs exceed 75% of the vehicle's actual cash value | 1 |
| Maine | If repair costs exceed 75% of the vehicle's actual cash value | 6 |
| Maryland | If repair costs exceed 75% of the vehicle's actual cash value | 3 |
| Massachusetts | Total Loss Formula (Repair + Salvage > ACV) | 3 |
| Michigan | If repair costs exceed 75% of the vehicle's actual cash value | 3 |
| Minnesota | If repair costs exceed 80% of the vehicle's actual cash value | 6 |
| Mississippi | If repair costs exceed 70% of the vehicle's actual cash value | 3 |
| Missouri | If repair costs exceed 80% of the vehicle's actual cash value | 5 |
| Montana | Total Loss Formula (Repair + Salvage > ACV) | 2 |
| Nebraska | If repair costs exceed 75% of the vehicle's actual cash value | 4 |
| Nevada | If repair costs exceed 65% of the vehicle's actual cash value | 3 |
| New Hampshire | If repair costs exceed 75% of the vehicle's actual cash value | 3 |
| New Jersey | 100% of the vehicle's actual cash value | 6 |
| New Mexico | Total Loss Formula (Repair + Salvage > ACV) | 4 |
| New York | Total Loss Formula (Repair + Salvage > ACV) | 3 |
| North Carolina | If repair costs exceed 75% of the vehicle's actual cash value | 3 |
| North Dakota | If repair costs exceed 75% of the vehicle's actual cash value | 6 |
| Ohio | 100% of the vehicle's actual cash value | 2 |
| Oklahoma | If repair costs exceed 60% of the vehicle's actual cash value | 2 |
| Oregon | If repair costs exceed 80% of the vehicle's actual cash value | 6 |
| Pennsylvania | Total Loss Formula (Repair + Salvage > ACV) | 2 |
| Rhode Island | Total Loss Formula (Repair + Salvage > ACV) | 10 |
| South Carolina | If repair costs exceed 75% of the vehicle's actual cash value | 3 |
| South Dakota | Total Loss Formula (Repair + Salvage > ACV) | 6 |
| Tennessee | If repair costs exceed 75% of the vehicle's actual cash value | 3 |
| Texas | If repair costs plus salvage value exceed 100% of the ACV | 2 |
| Utah | Total Loss Formula (Repair + Salvage > ACV) | 3 |
| Vermont | Total Loss Formula (Repair + Salvage > ACV) | 3 |
| Virginia | If repair costs exceed 75% of the vehicle's actual cash value | 5 |
| Washington | Total Loss Formula (Repair + Salvage ≥ ACV) | 3 |
| West Virginia | If repair costs exceed 75% of the vehicle's actual cash value | 2 |
| Wisconsin | If repair costs exceed 70% of the vehicle's actual cash value | 6 |
| Wyoming | If repair costs exceed 75% of the vehicle's actual cash value | 4 |
Threshold vs. payout: don't confuse the two
The total loss threshold only decides whether your car is repaired or written off. It does not decide how much you get. Once a car is totaled, the payout is its actual cash value — and that ACV is where insurers most often come in low. A certified total loss appraisal documents accurate local comparables so you can dispute a lowball offer. If your car was repaired rather than totaled, you may instead have a diminished value claim — estimate it free with our calculator.
Frequently Asked Questions
How is a total loss calculated?
A vehicle is declared a total loss when the cost to repair it (sometimes plus the salvage value) reaches a set percentage of its actual cash value. Some states use a fixed 'total loss threshold' percentage; others use a 'total loss formula' (TLF) where the car is totaled if repair cost plus salvage value equals or exceeds the ACV. Either way, once the threshold is met, the insurer pays the vehicle's actual cash value instead of repairing it.
What is a total loss threshold?
A total loss threshold (TLT) is the percentage of a vehicle's value at which state law requires it to be declared a total loss — commonly 70% to 80% of actual cash value, depending on the state. If repair costs exceed that percentage, the car is totaled and paid out at ACV.
Does the total loss threshold decide how much I get paid?
No. The threshold only decides whether your car is repaired or totaled. Once it's totaled, your payout is the vehicle's actual cash value (ACV) — and that ACV figure is where most disputes happen. Insurer valuation software often undervalues ACV, which is why an independent appraisal frequently recovers thousands more.
Can I dispute being totaled, or the amount I was offered?
You can dispute the valuation. If you disagree with the actual cash value the insurer assigned, a certified independent appraisal documents accurate local comparables and your car's true condition. Most auto policies also include an appraisal clause that lets you invoke a neutral valuation when you and the insurer can't agree.
Totaled — and the offer feels low?
Get a certified independent appraisal that proves your car's true value. Get paid or you don't pay.
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