Total Loss Formulas by State
State Threshold State Threshold
Alabama 75%
Montana TLF
Alaska TLF
Nebraska 75%
Arizona TLF
Nevada 65%
Arkansas 70%
New Hampshire 75%
California TLF
New Jersey TLF
Colorado 100%
New Mexico TLF
Connecticut TLF
New York 75%
Delaware TLF
North Carolina 75%
Florida 80%
North Dakota 75%
Georgia TLF
Ohio TLF
Hawaii TLF
Oklahoma 60%
Idaho TLF
Oregon 80%
Illinois TLF
Pennsylvania TLF
Indiana 70%
Rhode Island TLF
Iowa 50%
South Carolina 75%
Kansas 75%
South Dakota TLF
Kentucky 75%
Tennessee 75%
Louisiana 75%
Texas 100%
Maine TLF
Utah TLF
Maryland 75%
Vermont TLF
Massachusetts TLF
Virginia 75%
Michigan 75%
Washington TLF
Minnesota 70%
West Virginia 75%
Mississippi 70%
Wisconsin 70%
Missouri 80%
Wyoming 75%
Total Loss Formula
In states with no TLT requirements like Arizona, insurers may use an equation to determine a car's reparability. This is the basic equation: cost of repair + salvage value > actual cash value. If the cost to repair the car plus its salvage value is greater than the car's initial market value, it's considered a total loss.
What happens to the car? If you accept the claim settlement offer, the insurance company takes ownership of your car. They have, in effect, purchased the car from you with their settlement. The car is usually sold to a salvage yard, where it is auctioned, scrapped, or repaired.