When a Car Is a Total Loss in Alabama
How Alabama decides a car is a total loss, salvage title rules, and how to complain about a claim.
Short answer: A vehicle becomes a salvage vehicle (total loss) when an insurer or anyone else pays a monetary settlement for a vehicle whose damage is equal to or greater than 75% of its fair retail value before the damage, as shown in a current nationally recognized compilation of retail values. Alabama Department of Revenue, Salvage and Rebuilt Vehicles; FAQs; Alabama Department of Insurance, Automobile Insurance FAQs (Ala. Code § 32-8-87(d))
| Total loss rules | A vehicle becomes a salvage vehicle (total loss) when an insurer or anyone else pays a monetary settlement for a vehicle whose damage is equal to or greater than 75% of its fair retail value before the damage, as shown in a current nationally recognized compilation of retail values. A salvage vehicle cannot be registered or driven on public roads until a rebuilt title is issued. An owner who owned the vehicle before it became salvage applies by mail for a rebuilt inspection, with the salvage title, bills of sale for replacement parts, the pre-salvage registration receipt and a $90 inspection fee in certified funds; someone who did not own it before salvage needs a master dealer regulatory license to apply. |
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| Complaints about an insurer | Contact the insurer or agent first. If the problem is not resolved, file a complaint with the Alabama Department of Insurance using its Online Consumer Complaint Form (a PDF form is also available), including your contact information, the company or agent involved, your policy number, any claim number and a detailed description. Phone: 334-241-4141 (8:00 am to 5:00 pm); mail: Alabama Department of Insurance, P.O. Box 303351, Montgomery, AL 36130-3351. |
More Alabama car insurance & vehicle laws
- Minimum Car Insurance in Alabama
- Driving Without Insurance in Alabama
- SR-22 Insurance in Alabama
- Transferring a Car Title in Alabama
- All Alabama car insurance & vehicle laws rules
FAQ
When is a car a total loss in Alabama?
A vehicle becomes a salvage vehicle (total loss) when an insurer or anyone else pays a monetary settlement for a vehicle whose damage is equal to or greater than 75% of its fair retail value before the damage, as shown in a current nationally recognized compilation of retail values. A salvage vehicle cannot be registered or driven on public roads until a rebuilt title is issued. An owner who owned the vehicle before it became salvage applies by mail for a rebuilt inspection, with the salvage title, bills of sale for replacement parts, the pre-salvage registration receipt and a $90 inspection fee in certified funds; someone who did not own it before salvage needs a master dealer regulatory license to apply.
How do you file a complaint against a car insurance company in Alabama?
Contact the insurer or agent first. If the problem is not resolved, file a complaint with the Alabama Department of Insurance using its Online Consumer Complaint Form (a PDF form is also available), including your contact information, the company or agent involved, your policy number, any claim number and a detailed description. Phone: 334-241-4141 (8:00 am to 5:00 pm); mail: Alabama Department of Insurance, P.O. Box 303351, Montgomery, AL 36130-3351.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.