Total loss · IN
Indiana total loss claims
For an insured loss Indiana uses no percentage: a salvage title is required when an insurance company has determined it is economically impractical to repair the vehicle and has made an agreed settlement, and only for vehicles made within the last seven model years. The 70 percent of fair market value test in the same section applies to businesses that insure their own vehicles and to people who acquire a vehicle after it was damaged. 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
Indiana law
When a vehicle is a total loss in Indiana
Insurer decides
For an insured loss Indiana uses no percentage: a salvage title is required when an insurance company has determined it is economically impractical to repair the vehicle and has made an agreed settlement, and only for vehicles made within the last seven model years. The 70 percent of fair market value test in the same section applies to businesses that insure their own vehicles and to people who acquire a vehicle after it was damaged.
Authority: Ind. Code § 9-22-3-3(a)
What an Indiana settlement has to include
The Indiana Department of Insurance has directed auto insurers to pay sales tax in addition to the amount paid for a totaled vehicle, at the time the claimant is paid for the loss and not only when a replacement is bought; the tax is computed on the amount paid for the vehicle. The bulletin does not address title or registration fees.
Authority: Indiana Department of Insurance Bulletin 82 (Feb. 25, 1994)
How the insurer has to value your vehicle
Our research did not find an Indiana rule that prescribes how an insurer must value a total loss. Ask for the full valuation report, then check it with our guide to reading a valuation report.
The appraisal clause in Indiana
Our research did not find an Indiana 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: Indiana title rules
After an insurer pays an agreed settlement on a vehicle that meets the salvage criteria, the owner or lienholder must assign the title to the insurer within 30 days and the insurer must apply for a certificate of salvage title within 45 days of receiving it. If the owner keeps the vehicle as part of the settlement, the salvage title is issued to the owner, who must apply within 45 days of the settlement or pay a $10 penalty. A rebuilt vehicle needs a state police inspection and a restoration affidavit, and its new title is marked "REBUILT VEHICLE".
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 Indiana Department of Insurance.
- Small claims court: Indiana small claims court, for claims up to $10,000.
Sources
Researched October 11, 2026. General information from an appraisal perspective, not legal advice.
Autoloss in IN
Total loss appraisals for Indiana vehicles
An independent valuation of your Indiana 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 includesIndiana total loss questions
When is a car a total loss in Indiana?
For an insured loss Indiana uses no percentage: a salvage title is required when an insurance company has determined it is economically impractical to repair the vehicle and has made an agreed settlement, and only for vehicles made within the last seven model years. The 70 percent of fair market value test in the same section applies to businesses that insure their own vehicles and to people who acquire a vehicle after it was damaged.
Does an Indiana total loss settlement include sales tax and fees?
The Indiana Department of Insurance has directed auto insurers to pay sales tax in addition to the amount paid for a totaled vehicle, at the time the claimant is paid for the loss and not only when a replacement is bought; the tax is computed on the amount paid for the vehicle. The bulletin does not address title or registration fees.
Can I keep my totaled car in Indiana?
Usually you can ask to, and the insurer deducts the salvage value. After an insurer pays an agreed settlement on a vehicle that meets the salvage criteria, the owner or lienholder must assign the title to the insurer within 30 days and the insurer must apply for a certificate of salvage title within 45 days of receiving it. If the owner keeps the vehicle as part of the settlement, the salvage title is issued to the owner, who must apply within 45 days of the settlement or pay a $10 penalty. A rebuilt vehicle needs a state police inspection and a restoration affidavit, and its new title is marked "REBUILT VEHICLE".
Does Autoloss prepare total loss appraisals for Indiana 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 Indiana?
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.