Auto Insurance
Total Loss
A vehicle is declared a total loss when repair costs exceed a threshold percentage of its actual cash value.
Last reviewed: May 2026 · Editorial methodology
Definition
A vehicle is declared a total loss when the cost to repair it equals or exceeds a state-mandated percentage of its actual cash value (ACV) — typically between 70% and 100% depending on the state. For example, a vehicle with an ACV of $15,000 may be totaled if repairs exceed $10,500 (in a 70% threshold state). After a total loss declaration, your insurer pays you the ACV minus your deductible; if you have gap insurance, it covers the remaining loan balance. You can sometimes retain the salvage vehicle for a reduced payout, but the car receives a salvage title. Texas uses a 100% threshold, while many states use 75–80%.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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