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Total loss
What the number means, how it is built, and what you can check before you accept it.
General educational information, not legal or tax advice. Laws, deadlines and policy terms vary by state and by policy. Claimly Appraisals is not a law firm, an insurer or a public adjuster.
When an insurer declares a vehicle a total loss, the settlement is generally based on the vehicle's actual cash value under the terms of the policy: what the vehicle was worth in its market immediately before the loss. Depreciation is already built into that figure.
Actual cash value is not the loan balance and it is not replacement cost. If you owe more than the vehicle was worth, the difference is a separate matter between you and your lender.
Insurers usually rely on a valuation report from a third-party vendor. The report identifies the vehicle from its VIN, selects comparable vehicles, and adjusts for mileage, condition, options and location.
Depending on the state and the policy, the settlement may also include sales tax, title and registration fees.
The usual problems are a wrong trim level or missing options, a condition rating lower than the vehicle deserved, comparable vehicles that are far away or not truly comparable, and adjustments that are not explained.
Recent maintenance, new tires or documented upgrades are also easy to overlook if nobody tells the adjuster about them.
Ask for the full valuation report, not just the total. Confirm the VIN, trim, options and mileage. Look up the comparable vehicles: are they the same trim, similar mileage, and for sale near you?
Collect your own evidence: listings for vehicles like yours, service records, and photos taken before the loss.
If the claim is with your own insurer, your policy may contain an appraisal provision for disputes about the amount of loss. Read our guide to the appraisal clause before you accept or cash a settlement, because acceptance generally ends that option.
No. Actual cash value is the vehicle's market value before the loss. It can be more or less than your loan balance.
That depends on your state and your policy. Ask the adjuster to show which taxes and fees were included in the figure.
Not necessarily. You can ask for the valuation report, point out factual errors and provide your own evidence.
Sometimes. Owner retention rules vary by state and insurer, and a salvage amount is usually deducted. Ask your insurer how it works for your claim.
General educational information, not legal or tax advice. Laws, deadlines and policy terms vary by state and by policy. Claimly Appraisals is not a law firm, an insurer or a public adjuster.
Claimly Appraisals prepares an independent opinion of your vehicle's value. We do not represent you, do not contact your insurer, and do not negotiate your claim. Unless you separately purchase the Appointed Total Loss Appraiser service — an optional service with its own terms under which a certified independent appraiser serves as your appointed appraiser under your policy's appraisal clause — we do not participate in any appraisal proceeding on your behalf. This is not legal advice. The appraisal clause is a provision of your own insurance policy; read your policy and consult a licensed attorney for advice about your specific situation.
See how the process works and what you can check before you accept.