Short answer: When your car is totaled, many states set rules for how the insurer figures its value. In the states below, the offer must be based on the cost of a comparable car in your area, using local listings, dealer quotes or a qualifying valuation source, with any deductions documented. Florida, Minnesota, Washington, Nevada and Ohio also address sales tax or fees in the settlement.
These rules apply to claims under your own policy (first-party claims). Keep everything the insurer sends you about how it reached its number.
The table
| State | Valuation rule | Details | Source |
|---|---|---|---|
| Florida | For ACV or like-kind policies, the insurer must use one method: a cash settlement based on the cost to buy a comparable car (including sales tax where it applies), or a specified comparable replacement car | Cash value may come from 2+ local comparables available in the last 90 days, a recognized database or guidebook (identified on request), or 2+ licensed dealer quotes. Other methods need documentation and itemized deductions, explained in writing on request | Fla. Stat. §626.9743(5) |
| Illinois | Insurer must either offer a comparable replacement car (same make and year, similar body style and options) or pay a cash settlement based on retail value from approved sources | Total-loss information (Exhibit A) within 7 days. If you can't buy a comparable car for the payout within 30 days, the insurer must reopen the claim. Sales tax and title/transfer fees are reimbursed if you buy or lease within 30 days | 50 Ill. Adm. Code 919.80(c) |
| Kentucky | Insurer must either offer a specific comparable replacement car with taxes and transfer fees paid, or pay cash based on the actual cost of a comparable car, including taxes and fees, minus your deductible | Value comes from the local market, 2+ licensed dealer quotes, or a qualifying valuation database. If you tell the insurer within 35 days that you can't buy a comparable car for that amount, it must reopen the claim | 806 KAR 12:095 §7 |
| Louisiana | If the policy settles total losses at actual cash value or like kind and quality and the insurer pays cash, the comparable-car cost must come from a local dealer market survey, a recognized industry database or public guidebook (with the valuation documents given to you), or a qualified appraiser you and the insurer both agree on | If you present two independent appraisals showing your car was worth more in the local market than the database or guidebook says, the local market value must be used. "Local market area" means a reasonable distance around where the car is usually garaged | La. R.S. 22:1892(B)(5) |
| Minnesota | Insurer must offer a comparable replacement car, or cash based on the actual cost of a comparable car, with applicable taxes, license fees (at least pro rata) and transfer fees, less the deductible | Cost is set by a comparable car in your local market, adjusted for mileage, condition and options, or by 2+ local quotes you must see before settlement. Any other method must be documented and explained | Minn. Stat. §72A.201 subd. 6(1) |
| Nevada | The insurer may offer a specific comparable replacement car with taxes, license and transfer fees paid (less the deductible), or a cash settlement based on the cost to buy a comparable car including those taxes and fees | Cash value may come from the average of 2+ comparables available in the local market within the last 90 days (expanded only as needed), dealer price quotations, or other listed methods | NAC §686A.680 |
| Ohio | A replacement car must be the same make, same or newer year, similar body style, options and mileage, in as good or better condition, with taxes and fees paid; a cash offer must be based on the actual cost to buy a comparable car less the deductible | Cash value may come from 2+ local comparables available in the last 90 days, then nearby metro areas, then 2+ licensed dealer quotes, then a recognized industry source such as a valuation database | Ohio Admin. Code 3901-1-54(H) |
| Oregon | For ACV or like-kind policies, the insurer may offer a comparable replacement car (same make, same or newer year, similar body style, options and mileage, as good or better condition) with taxes and transfer fees paid, or a cash settlement including taxes and fees | Cash value may come from a computerized database meeting set standards (local market, vehicles available within the last 90 days), the actual cost of a specific comparable car, or a documented alternative with itemized dollar deductions explained in writing. The insurer must give you copies of the information it used | OAR 836-080-0240 |
| Rhode Island | For fair-market-value or like-kind policies, the insurer either offers a comparable replacement at a licensed dealer within a reasonable distance, paying taxes, title and fees, or pays cash at fair market value plus taxes, title, registration and transfer fees, minus your deductible | Deductions must be measurable, itemized and documented, and none for reconditioning or dealer prep; you get a copy of the valuation. If you tell the insurer within 35 days of receiving the check that you can't buy a comparable car for that amount, it must reopen the claim and find one, pay the difference, offer a replacement, or go to appraisal | 230-RICR-20-40-2, § 2.8(B) |
| Washington | Cash settlement is the actual cash value of a comparable car, less the deductible, set by local comparables, 2+ dealer quotes within 150 miles, 2+ local ads, or a qualifying computerized source | Offers must use itemized, verifiable amounts for cars available within 90 days of the loss, include taxes and fees, and come with the valuation report on request. If you disagree and the policy has appraisal, either side may invoke it | WAC 284-30-391 |
We list only states where we read the official text ourselves in October 2026. A state that is missing is not covered here; check that state's statute or insurance department.
If the total loss offer looks low
- Ask for the valuation report and the list of comparable cars.
- Check the comparables for year, trim, mileage and options, and flag any that don't match.
- Send your own evidence: local listings, dealer quotes, service records and receipts for recent upgrades.
- Check your policy for an appraisal clause if you still disagree.
See also diminished value claim rules by state and insurance claim deadlines by state.
Download and embed
- CSV: total-loss-car-valuation-rules-by-state.csv
- Embed: copy the iframe code in `embed-snippet.html` and keep the source link.
Methodology
Each row was read from the official source linked in the Source column in October 2026. This is general information, not legal advice. See also the state insurance rules hub.
Frequently asked questions
How do insurers value a totaled car?
In the states in this table, the offer must be based on the cost of a comparable car in your local market, from listings, dealer quotes or a qualifying database, with deductions itemized.
Does a total loss settlement include sales tax?
Florida includes sales tax where it applies, Minnesota includes taxes and license and transfer fees, and Washington requires applicable government taxes and fees.
Can I dispute a total loss value?
Yes. Ask for the valuation report, send your own comparables, and check whether your policy has an appraisal clause. Washington's rule confirms either side may invoke it when the policy has one.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. Not legal, tax or financial advice, and not a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.