Total loss · TN
Tennessee total loss claims
The Tennessee Department of Revenue describes a salvage vehicle as a passenger motor vehicle wrecked, destroyed or damaged to the extent that repair costs would exceed 75% of its retail value. That is a title rule: once a vehicle has been deemed a total loss and the claim paid, the insurer or owner must obtain a salvage or non-repairable certificate. The insurance claim rules themselves do not set a percentage at which an insurer must total a car. 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
75% of value
Taxes and fees
Addressed by state rule
Appraisal clause
Set by your policy
Insurance regulator
Tennessee Department of Commerce & Insurance, Insurance Division
Tennessee law
When a vehicle is a total loss in Tennessee
Percentage threshold · 75%
The Tennessee Department of Revenue describes a salvage vehicle as a passenger motor vehicle wrecked, destroyed or damaged to the extent that repair costs would exceed 75% of its retail value. That is a title rule: once a vehicle has been deemed a total loss and the claim paid, the insurer or owner must obtain a salvage or non-repairable certificate. The insurance claim rules themselves do not set a percentage at which an insurer must total a car.
What a Tennessee settlement has to include
For a first-party total loss, a cash settlement must be based on the actual cost to purchase a comparable automobile, including all applicable taxes, license fees and other fees incident to transfer of ownership, less any deductible; a replacement vehicle must likewise come with those taxes and fees paid.
How the insurer has to value your vehicle
The insurer may base the value on two or more comparable automobiles available in the local market area within the last 90 days, on comparables from nearby areas if none are local, on quotes from two or more licensed dealers, or on a statistically valid valuation source that gives primary consideration to local market values. If the settlement deviates from those methods, the deviation must be documented, deductions (including salvage) must be specific as to dollar amount, and the basis for the settlement must be fully explained to the claimant.
The appraisal clause in Tennessee
Our research did not find a Tennessee 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: Tennessee title rules
After a vehicle has been deemed a total loss and the claim paid, the insurance company or the owner must obtain a salvage or non-repairable certificate. A salvage vehicle cannot be registered or driven on Tennessee roads until it has been repaired and has passed the Rebuilt Vehicle process, after which the title is branded Rebuilt.
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 Tennessee Department of Commerce & Insurance, Insurance Division.
- Small claims court: Tennessee small claims court, for claims up to $25,000.
Sources
- Tenn. Code Ann. § 55-3-201 et seq., as described by the Tennessee Department of Revenue (article RBLT-1)
- Tenn. Comp. R. & Regs. 0780-01-05-.09(1)(a)-(b)
Researched October 11, 2026. General information from an appraisal perspective, not legal advice.
Autoloss in TN
Total loss appraisals for Tennessee vehicles
An independent valuation of your Tennessee 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 includesTennessee total loss questions
When is a car a total loss in Tennessee?
The Tennessee Department of Revenue describes a salvage vehicle as a passenger motor vehicle wrecked, destroyed or damaged to the extent that repair costs would exceed 75% of its retail value. That is a title rule: once a vehicle has been deemed a total loss and the claim paid, the insurer or owner must obtain a salvage or non-repairable certificate. The insurance claim rules themselves do not set a percentage at which an insurer must total a car.
Does a Tennessee total loss settlement include sales tax and fees?
For a first-party total loss, a cash settlement must be based on the actual cost to purchase a comparable automobile, including all applicable taxes, license fees and other fees incident to transfer of ownership, less any deductible; a replacement vehicle must likewise come with those taxes and fees paid.
Can I keep my totaled car in Tennessee?
Usually you can ask to, and the insurer deducts the salvage value. After a vehicle has been deemed a total loss and the claim paid, the insurance company or the owner must obtain a salvage or non-repairable certificate. A salvage vehicle cannot be registered or driven on Tennessee roads until it has been repaired and has passed the Rebuilt Vehicle process, after which the title is branded Rebuilt.
Does Autoloss prepare total loss appraisals for Tennessee 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 Tennessee?
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.