Total loss · MD
Maryland total loss claims
Maryland's insurance regulation treats a private passenger vehicle as a total loss when the cost of repairs (which may include estimated hidden damage and anticipated rental cost) equals or exceeds the vehicle's actual cash value, or a percentage of that value chosen by the insurer. The 75 percent figure in the Transportation Article decides how the salvage certificate is marked, and it expressly does not limit an insurer's or owner's right to decide not to repair. 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
Maryland law
When a vehicle is a total loss in Maryland
Insurer decides
Maryland's insurance regulation treats a private passenger vehicle as a total loss when the cost of repairs (which may include estimated hidden damage and anticipated rental cost) equals or exceeds the vehicle's actual cash value, or a percentage of that value chosen by the insurer. The 75 percent figure in the Transportation Article decides how the salvage certificate is marked, and it expressly does not limit an insurer's or owner's right to decide not to repair.
Authority: COMAR 31.15.12.02B(9); Md. Code, Transp. § 13-506(c)
What a Maryland settlement has to include
A cash settlement offer must be at least the retail value of a substantially similar vehicle plus applicable taxes and transfer fees, and the taxes and fees are owed whether or not the claimant keeps the salvage.
Authority: COMAR 31.15.12.04
How the insurer has to value your vehicle
The offer must rest on the retail value of a substantially similar vehicle (same make and model, same or newer year, at least the same major options, similar or better condition, and mileage within the greater of 4,000 miles or 10 percent) taken from a nationally recognized valuation manual or statistically valid database, or on a quote from a qualified dealer reasonably convenient to the claimant. The offer must tell the claimant they can ask in writing for a copy of the offer, the valuation method and sources, a detailed calculation, every deduction and the condition inspection guidelines, and the insurer must answer within 7 business days. The rules cover both first-party and third-party claims, with an offer due within 10 business days (first party) or 10 days (third party) of the total loss decision.
Authority: COMAR 31.15.12.02B(7), .03, .04 and .05
The appraisal clause in Maryland
Our research did not find a Maryland 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: Maryland title rules
An insurer that acquires a vehicle through a claim settlement must apply for a salvage certificate within 10 days of the settlement, and the certificate states whether repair cost was more than 75 percent of pre-damage fair market value. If the owner keeps the vehicle, the insurer notifies the Motor Vehicle Administration, which records the vehicle as salvage; for a repairable vehicle the owner must show proof of a safety inspection within 90 days of the notice or the registration is suspended.
Authority: Md. Code, Transp. §§ 13-506 and 13-506.1
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 Maryland Insurance Administration.
- Small claims court: Maryland small claims court, for claims up to $5,000.
Official guide: Maryland Insurance Administration: Understanding Total Loss
Sources
- COMAR 31.15.12.02B(9); Md. Code, Transp. § 13-506(c)
- COMAR 31.15.12.04
- COMAR 31.15.12.02B(7), .03, .04 and .05
- Md. Code, Transp. §§ 13-506 and 13-506.1
- Maryland Insurance Administration: Understanding Total Loss
Researched October 11, 2026. General information from an appraisal perspective, not legal advice.
Autoloss in MD
Total loss appraisals for Maryland vehicles
An independent valuation of your Maryland 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 includesMaryland total loss questions
When is a car a total loss in Maryland?
Maryland's insurance regulation treats a private passenger vehicle as a total loss when the cost of repairs (which may include estimated hidden damage and anticipated rental cost) equals or exceeds the vehicle's actual cash value, or a percentage of that value chosen by the insurer. The 75 percent figure in the Transportation Article decides how the salvage certificate is marked, and it expressly does not limit an insurer's or owner's right to decide not to repair.
Does a Maryland total loss settlement include sales tax and fees?
A cash settlement offer must be at least the retail value of a substantially similar vehicle plus applicable taxes and transfer fees, and the taxes and fees are owed whether or not the claimant keeps the salvage.
Can I keep my totaled car in Maryland?
Usually you can ask to, and the insurer deducts the salvage value. An insurer that acquires a vehicle through a claim settlement must apply for a salvage certificate within 10 days of the settlement, and the certificate states whether repair cost was more than 75 percent of pre-damage fair market value. If the owner keeps the vehicle, the insurer notifies the Motor Vehicle Administration, which records the vehicle as salvage; for a repairable vehicle the owner must show proof of a safety inspection within 90 days of the notice or the registration is suspended.
Does Autoloss prepare total loss appraisals for Maryland 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 Maryland?
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.