What a Total-Loss Settlement Includes, Line by Line
The pieces of a total-loss payment, from actual cash value to the check: taxes and fees, the deductible, a loan payoff, salvage, and rental.
Published September 23, 2026
Bottom line
A total-loss settlement starts with your car's actual cash value. Depending on your state and policy, sales tax and title and registration fees may be added. Your deductible is subtracted when the payment comes under your own collision or comprehensive coverage. A lender is paid first. If you keep the car, its salvage value is subtracted. Ask for the settlement worksheet that shows every line.
Actual cash value
Everything starts from the value of your car immediately before the loss, set from comparable vehicles in your area. If that number is low, every line after it is low too, so it is the first thing to check.
Sales tax, title, and registration fees
Many states require the insurer to cover the sales tax and some of the fees you will pay to replace the car. The rules vary by state and by whose insurer is paying. If these lines are missing, ask why.
Your deductible
When the payment comes under your own collision or comprehensive coverage, your deductible is subtracted. When the other driver's insurer pays under their liability coverage, there is normally no deductible to subtract.
A loan or lease payoff
If the car is financed or leased, the lender or leasing company is paid first, up to what you owe, and any remainder comes to you. If you owe more than the car is worth, gap coverage, if you have it, may pay the difference.
Keeping the car
If you choose to keep a totaled car, the insurer usually subtracts its salvage value, which is what the insurer could have sold it for.
Rental and loss of use
Rental coverage on your own policy usually ends a few days after the insurer makes its settlement offer. When the other driver was at fault, their insurer may also owe for the time you were without a car.
Frequently asked questions
Why is my check smaller than the actual cash value?▼
Are the taxes and fees negotiable?▼
Does the settlement cover personal belongings in the car?▼
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At least $1,000 more, or your fee is waived. This applies once we accept your consultation and serve as your appraiser. The starting point is your insurer's offer on the day we accept. If the appraisal award, or a higher offer your insurer makes instead, is less than $1,000 above it, we waive our $495 Appointed Appraiser Service fee. If an umpire is needed, the umpire's fee is separate. We pre-authorize your card only after we accept your consultation, so there's no upfront payment.
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