1. What is State Farm's Total Loss Threshold?

State Farm typically considers a vehicle a total loss when the cost to repair it exceeds approximately 75% of its Actual Cash Value (ACV). This threshold may vary by state regulations and specific circumstances.

2. How Does the Calculator Work?

The calculator uses State Farm's total loss formula:

Where:

• Repair Cost — Estimated cost to repair the vehicle
• Actual Cash Value (ACV) — Current market value of the vehicle before the accident
• 0.75 — State Farm's typical threshold percentage (75% of ACV)

Explanation: If the repair cost exceeds 75% of the vehicle's ACV, State Farm will typically declare it a total loss.

3. Importance of Total Loss Determination

Details: Determining whether a vehicle is a total loss is crucial for insurance claims, as it affects whether the vehicle will be repaired or the policyholder will receive a settlement for the ACV.

4. Using the Calculator

Tips: Enter the estimated repair cost and the vehicle's actual cash value in dollars. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is the 75% threshold consistent across all states?
A: No, some states have different thresholds mandated by law. State Farm may also adjust based on specific circumstances.

Q2: What factors determine Actual Cash Value?
A: ACV considers the vehicle's year, make, model, mileage, condition, and local market prices for similar vehicles.

Q3: What happens if my vehicle is declared a total loss?
A: State Farm will typically pay you the ACV minus your deductible, and the vehicle will be salvaged.

Q4: Can I keep my vehicle if it's declared a total loss?
A: In some cases, you may be able to keep the vehicle for a reduced settlement amount, but it will receive a salvage title.

Q5: Does State Farm include sales tax in the ACV payment?
A: Most states require insurers to include sales tax in total loss settlements, but regulations vary.