Total loss · AR
Arkansas total loss claims
Arkansas title law makes a vehicle a 'salvage vehicle' when damage equals or exceeds 70 percent of its average retail value in a state-approved pricing guide, or when it was submerged above the dashboard. That is a title-branding test, not a rule telling insurers when to declare a total loss, but it applies to insured losses: an insurer that pays out on a salvage vehicle must take a salvage title or report the vehicle to the Office of Motor Vehicle. Motorcycles, trucks of 10,000 pounds or more unladen, and vehicles more than seven model years old are outside the salvage rules. 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
70% of value
Taxes and fees
Addressed by state rule
Appraisal clause
Set by your policy
Insurance regulator
Arkansas law
When a vehicle is a total loss in Arkansas
Percentage threshold · 70%
Arkansas title law makes a vehicle a 'salvage vehicle' when damage equals or exceeds 70 percent of its average retail value in a state-approved pricing guide, or when it was submerged above the dashboard. That is a title-branding test, not a rule telling insurers when to declare a total loss, but it applies to insured losses: an insurer that pays out on a salvage vehicle must take a salvage title or report the vehicle to the Office of Motor Vehicle. Motorcycles, trucks of 10,000 pounds or more unladen, and vehicles more than seven model years old are outside the salvage rules.
Authority: Ark. Code § 27-14-2301; DFA Rule 2007-8 (006.05.07 Ark. Code R. 007)
What an Arkansas settlement has to include
Yes for first-party total losses under private passenger auto policies. A replacement vehicle must come with all applicable taxes, license fees and other transfer fees paid, and a cash settlement must include all applicable taxes, license fees and other fees actually incurred in transferring ownership of a comparable automobile.
Authority: Ark. Ins. Dept. Rule 43, § 10(a)(1)-(2)
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, on quotes from two or more qualified local dealers or appraisal services. If the insurer uses another method 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: Ark. Ins. Dept. Rule 43, § 10(a)(2)-(3), (g)
The appraisal clause in Arkansas
Our research did not find an Arkansas 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: Arkansas title rules
The owner of a salvage vehicle, including an insurer that takes ownership after paying the claim, must surrender the title and apply for a salvage title within 30 days. If the insurer pays the claim but the owner keeps the vehicle, the insurer must file an Insurer Notification and Declaration of Damage with the Office of Motor Vehicle, which flags the title as salvage until a salvage title is issued; a rebuilt title can follow after repair.
Authority: DFA Rule 2007-8, §§ 2-3 (006.05.07 Ark. Code R. 007); Ark. Code §§ 27-14-2301 to 27-14-2305
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 Arkansas Insurance Department.
- Small claims court: Arkansas small claims court, for claims up to $5,000.
Sources
- Ark. Code § 27-14-2301; DFA Rule 2007-8 (006.05.07 Ark. Code R. 007)
- Ark. Ins. Dept. Rule 43, § 10(a)(1)-(2)
Researched October 11, 2026. General information from an appraisal perspective, not legal advice.
Autoloss in AR
Total loss appraisals for Arkansas vehicles
An independent valuation of your Arkansas 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 includesArkansas total loss questions
When is a car a total loss in Arkansas?
Arkansas title law makes a vehicle a 'salvage vehicle' when damage equals or exceeds 70 percent of its average retail value in a state-approved pricing guide, or when it was submerged above the dashboard. That is a title-branding test, not a rule telling insurers when to declare a total loss, but it applies to insured losses: an insurer that pays out on a salvage vehicle must take a salvage title or report the vehicle to the Office of Motor Vehicle. Motorcycles, trucks of 10,000 pounds or more unladen, and vehicles more than seven model years old are outside the salvage rules.
Does an Arkansas total loss settlement include sales tax and fees?
Yes for first-party total losses under private passenger auto policies. A replacement vehicle must come with all applicable taxes, license fees and other transfer fees paid, and a cash settlement must include all applicable taxes, license fees and other fees actually incurred in transferring ownership of a comparable automobile.
Can I keep my totaled car in Arkansas?
Usually you can ask to, and the insurer deducts the salvage value. The owner of a salvage vehicle, including an insurer that takes ownership after paying the claim, must surrender the title and apply for a salvage title within 30 days. If the insurer pays the claim but the owner keeps the vehicle, the insurer must file an Insurer Notification and Declaration of Damage with the Office of Motor Vehicle, which flags the title as salvage until a salvage title is issued; a rebuilt title can follow after repair.
Does Autoloss prepare total loss appraisals for Arkansas 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 Arkansas?
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.