Total loss · AZ
Arizona total loss claims
Arizona sets no damage percentage. The title statute defines a salvage vehicle as one stolen, wrecked, flood damaged or otherwise damaged to the extent that the owner, leasing company, financial institution or insurance company considers it uneconomical to repair. On an insured loss, that judgment is the insurer's. If the insurer’s value looks low, the dispute comes down to evidence: the right trim and options, fair comparable vehicles and explained condition adjustments.
Total loss rule
Insurer decides
Taxes and fees
Addressed by state rule
Appraisal clause
Set by your policy
Insurance regulator
Arizona law
When a vehicle is a total loss in Arizona
Insurer decides
Arizona sets no damage percentage. The title statute defines a salvage vehicle as one stolen, wrecked, flood damaged or otherwise damaged to the extent that the owner, leasing company, financial institution or insurance company considers it uneconomical to repair. On an insured loss, that judgment is the insurer's.
Authority: A.R.S. § 28-2091(T)(3)
What an Arizona settlement has to include
Yes for first-party total losses. Whether the insurer offers a replacement vehicle or a cash settlement, it must cover all applicable taxes, license fees and other fees incident to transferring ownership of a comparable automobile, at no cost to the policyholder other than the deductible.
Authority: Ariz. Admin. Code § R20-6-801(H)(1)(a)-(b)
How the insurer has to value your vehicle
A cash settlement must be based on the cost of a comparable automobile in the local market area or, if none is available there, on one of two or more quotes from qualified local dealers. If the insurer departs from those methods it must document the vehicle's condition, itemize every deduction (including salvage) in dollars, and fully explain the basis of the settlement to the policyholder. The rule does not expressly give a right to a copy of the valuation report.
Authority: Ariz. Admin. Code § R20-6-801(H)(1)
The appraisal clause in Arizona
Our research did not find an Arizona statute or regulation on auto policy appraisal clauses, so the wording of your own policy controls: whether it has one, the deadlines, and who pays.
Keeping a totaled vehicle: Arizona title rules
An insurer that acquires a salvage vehicle through a total loss settlement must apply for a salvage (or nonrepairable) certificate of title within 30 days after the owner assigns the title. An owner who keeps a salvage vehicle must apply for the salvage title before receiving the total loss settlement from the insurer.
Authority: A.R.S. § 28-2091(A), (C)
If you and the insurer cannot agree
- Dispute the valuation in writing with evidence. How to challenge comparables and condition deductions.
- If your policy has an appraisal clause, you can invoke it. The appraisal clause, step by step.
- File a complaint with the Arizona Department of Insurance and Financial Institutions (DIFI).
- Small claims court: Arizona small claims court, for claims up to $5,000.
Official guide: Arizona Department of Insurance and Financial Institutions: Automobile Insurance (Total Loss Settlements section)
Sources
- A.R.S. § 28-2091(T)(3)
- Ariz. Admin. Code § R20-6-801(H)(1)(a)-(b)
- Arizona Department of Insurance and Financial Institutions: Automobile Insurance (Total Loss Settlements section)
Researched October 11, 2026. General information from an appraisal perspective, not legal advice.
Autoloss in AZ
Total loss appraisals for Arizona vehicles
An independent valuation of your Arizona vehicle just before the loss, from comparable vehicles, your records and photos, reviewed by Monica Fisher. The claim review is free and the fee is quoted after we review your situation. You, or your attorney, present the report.
What the appraisal includesArizona total loss questions
When is a car a total loss in Arizona?
Arizona sets no damage percentage. The title statute defines a salvage vehicle as one stolen, wrecked, flood damaged or otherwise damaged to the extent that the owner, leasing company, financial institution or insurance company considers it uneconomical to repair. On an insured loss, that judgment is the insurer's.
Does an Arizona total loss settlement include sales tax and fees?
Yes for first-party total losses. Whether the insurer offers a replacement vehicle or a cash settlement, it must cover all applicable taxes, license fees and other fees incident to transferring ownership of a comparable automobile, at no cost to the policyholder other than the deductible.
Can I keep my totaled car in Arizona?
Usually you can ask to, and the insurer deducts the salvage value. An insurer that acquires a salvage vehicle through a total loss settlement must apply for a salvage (or nonrepairable) certificate of title within 30 days after the owner assigns the title. An owner who keeps a salvage vehicle must apply for the salvage title before receiving the total loss settlement from the insurer.
Does Autoloss prepare total loss appraisals for Arizona vehicles?
Yes. We prepare an independent valuation from your records, photos and the insurer’s report. The claim review is free, and the fee is quoted after we review your situation.
Low total loss offer in Arizona?
The claim review is free: we look at your situation and tell you whether an appraisal is likely to help. The appraisal itself is a paid report. We help from start to finish, including a custom demand letter, and our support staff is a phone call away throughout the process.