TOTAL LOSS
DEFINITION
What is a Total Loss?
A vehicle is defined as a total loss according to the Kansas Insurance Department:
“If an insurance company decides a motor vehicle will cost more to repair than its fair retail market value, then they will declare it a total loss.”
When can the insurance company total my car?
The insurance company has the right to determine your vehicle as a total loss at any moment.
The only requirement of the insurance company when settling your claim is to be fair in their settlement with you.
When a damage claim is made, the insurance company must make a decision on whether to indemnify you by either:
Replacing your vehicle (totaling), or
Paying to repair the damages
This decision is usually made based on what is most financially advantageous for the insurance company.
In the state of Kansas, the threshold for a total loss is typically 75%.
That means if the cost to repair the damages to your vehicle exceeds 75% of the vehicle’s value, it is generally considered a total loss by most insurance companies.
SETTLEMENT
Do I have to take their offer?
Absolutely not.
Insurance companies are required by law to document the claims file when a rejection is made.
When settling a total loss in the state of Kansas, the settlement must be made:
Based on actual cash value, or
Replacement with another of like kind and quality
according to the Unfair Claims Settlement Practice Model.
To be clear… you do NOT have to take whatever the insurance offers you.
How do I make sure my total loss settlement is fair?
We always suggest our customers do their own homework and not rely solely on the insurance company’s valuation.
One effective way to determine a fair value is:
Find 3 comparable vehicles currently for sale in your local market
Add the prices together
Divide by 3 to find the average
Add the cost of:
Taxes
Title
Tags
This gives you a realistic replacement cost and a more accurate actual cash value.
It is also a good idea to save your research so you can show how you arrived at your settlement value.
FAQ
My insurance company said they want to pick up my vehicle BEFORE settling my claim. Should I let them?
We always suggest using simple common sense when dealing with insurance companies.
It would not make sense for most people to release their vehicle and its keys to ANYONE before coming to an agreement on the settlement.
Can I get reimbursed for the recent improvements I’ve made to my vehicle?
This is something that should be discussed during negotiations with your insurance company.
If the improvements to your vehicle add to the actual cash value of your car, then they should be considered.
My insurance company said they used “CCC” or “KBB” when valuing my car… should I trust that?
No.
When valuing your vehicle, you should always do your own research and make sure the value is based on the actual cash value in today’s market.
If your research aligns with a third party company’s findings, that’s fine.
If not, you have the right to challenge and reject their valuation.
Dealing with a total loss?
Don’t accept an offer before understanding your options.
Call Best Body Shop and we’ll help you navigate the process the right way.
📞 316-516-3827