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?▼
Usually because of the deductible, a loan payoff sent to the lender, or a salvage deduction if you kept the car. The settlement worksheet should show each one.
Are the taxes and fees negotiable?▼
They follow your state's rules rather than negotiation. The thing to check is that they are included where your state requires them.
Does the settlement cover personal belongings in the car?▼
Usually not. Auto policies cover the car; personal items are more often covered by a homeowners or renters policy.

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