Colorado total loss claims

What a Colorado settlement has to include

Yes. By statute an insurer must pay title fees, sales tax, and any other transfer or registration fee associated with the total loss of a motor vehicle. The Division of Insurance's stated position is that registration fees are owed even when the owner keeps the totaled vehicle for a reduced settlement.

Authority: C.R.S. § 10-4-639(1); Colo. Div. of Insurance Bulletin B-5.51

How the insurer has to value your vehicle

The insurer's total loss method must be fair and consistent, must consider the vehicle's unique characteristics, and must use a credible source of valuation; the insurer may not switch between valuation sources just to reach the lowest payout. The statute does not itself require local comparables, an itemized written explanation, or a copy of the valuation report.

Authority: C.R.S. § 10-4-639(3)

The appraisal clause in Colorado

Our research did not find a Colorado 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: Colorado title rules

An insurer that takes ownership of a salvage vehicle must apply for a salvage certificate of title before transferring it. An owner who keeps the vehicle after the insurer settles a salvage claim must apply for a salvage certificate of title in their own name; the vehicle cannot be driven on the road until it is repaired and a 'rebuilt from salvage' title is issued.

Authority: Colorado DMV, Salvage Vehicles; C.R.S. § 42-6-102(17)

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 Colorado Division of Insurance.
• Small claims court: Colorado small claims court, for claims up to $7,500.