Total loss · IL
Illinois total loss claims
Illinois sets no damage percentage for an insurer's total-loss decision; the insurer decides under the policy. Once an insurance company pays a total loss claim, the Vehicle Code treats it as the owner and the vehicle as salvage. The 50 percent tests in the same section apply to other situations (commercial fleet vehicles, flood vehicles and dealer or rebuilder title applications), not to an insurer's decision on an ordinary claim. 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
State rule found
Insurance regulator
Illinois law
When a vehicle is a total loss in Illinois
Insurer decides
Illinois sets no damage percentage for an insurer's total-loss decision; the insurer decides under the policy. Once an insurance company pays a total loss claim, the Vehicle Code treats it as the owner and the vehicle as salvage. The 50 percent tests in the same section apply to other situations (commercial fleet vehicles, flood vehicles and dealer or rebuilder title applications), not to an insurer's decision on an ordinary claim.
Authority: 625 ILCS 5/3-117.1(b)(1)
What an Illinois settlement has to include
On a first-party total loss paid in cash, the insurer must reimburse the sales tax and transfer and title fees if the insured buys or leases another vehicle within 30 days of receiving the settlement and sends proof within 33 days, capped at the tax and fees that would apply to the value of the totaled vehicle. The insurer may instead pay those amounts up front at settlement. If the insurer provides a replacement vehicle, it pays the tax and fees.
Authority: 50 Ill. Adm. Code 919.80(c)(3)(A)
How the insurer has to value your vehicle
The insurer must base a cash settlement on retail value from a regularly published guide, a qualifying computerized source using data from the area where the car was principally garaged, a computerized service that includes at least two vehicles available from or recently sold by licensed Illinois dealers, or at least two written dealer quotes (which must be given to the insured). The claim file must document how the value was reached, and "dealer prep" style deductions are prohibited. Within 7 days of the total-loss decision the insurer must give the insured the written total-loss information in Exhibit A of Part 919.
Authority: 50 Ill. Adm. Code 919.80(c)
The appraisal clause in Illinois
If the insured cannot buy a comparable vehicle for the settlement amount within 30 days of receiving the draft, the insurer must reopen the claim, and one permitted way to finish it is the appraisal section of the policy. That appraisal binds both sides but does not waive other rights under the policy or at common law.
Authority: 50 Ill. Adm. Code 919.80(c)(2)(F)
Keeping a totaled vehicle: Illinois title rules
When an insurer pays a total loss claim it is deemed the owner and must send the title and a salvage certificate application to the Secretary of State within 20 days. The owner may keep the vehicle, by agreement with the insurer, only if it has hail damage alone that does not affect safe operation or is 9 model years old or older. A salvage vehicle may not be driven on Illinois roads.
Authority: 625 ILCS 5/3-117.1(b)(1), (e)
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 Illinois Department of Insurance.
- Small claims court: Illinois small claims court, for claims up to $10,000.
Official guide: Illinois Department of Insurance: Total Loss Auto Claims with Your Insurance Company
Sources
- 625 ILCS 5/3-117.1(b)(1)
- 50 Ill. Adm. Code 919.80(c)(3)(A)
- Illinois Department of Insurance: Total Loss Auto Claims with Your Insurance Company
Researched October 11, 2026. General information from an appraisal perspective, not legal advice.
Autoloss in IL
Total loss appraisals for Illinois vehicles
An independent valuation of your Illinois 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 includesIllinois total loss questions
When is a car a total loss in Illinois?
Illinois sets no damage percentage for an insurer's total-loss decision; the insurer decides under the policy. Once an insurance company pays a total loss claim, the Vehicle Code treats it as the owner and the vehicle as salvage. The 50 percent tests in the same section apply to other situations (commercial fleet vehicles, flood vehicles and dealer or rebuilder title applications), not to an insurer's decision on an ordinary claim.
Does an Illinois total loss settlement include sales tax and fees?
On a first-party total loss paid in cash, the insurer must reimburse the sales tax and transfer and title fees if the insured buys or leases another vehicle within 30 days of receiving the settlement and sends proof within 33 days, capped at the tax and fees that would apply to the value of the totaled vehicle. The insurer may instead pay those amounts up front at settlement. If the insurer provides a replacement vehicle, it pays the tax and fees.
Can I keep my totaled car in Illinois?
Usually you can ask to, and the insurer deducts the salvage value. When an insurer pays a total loss claim it is deemed the owner and must send the title and a salvage certificate application to the Secretary of State within 20 days. The owner may keep the vehicle, by agreement with the insurer, only if it has hail damage alone that does not affect safe operation or is 9 model years old or older. A salvage vehicle may not be driven on Illinois roads.
How does the appraisal clause work in Illinois?
If the insured cannot buy a comparable vehicle for the settlement amount within 30 days of receiving the draft, the insurer must reopen the claim, and one permitted way to finish it is the appraisal section of the policy. That appraisal binds both sides but does not waive other rights under the policy or at common law.
Does Autoloss prepare total loss appraisals for Illinois 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 Illinois?
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.