When a Car Is a Total Loss in Iowa

In Iowa a "wrecked or salvage vehicle" is a damaged vehicle whose cost of repair exceeds 70% of its fair market value before the damage. A vehicle that an insurer takes ownership of through a settlement for damage or unrecovered theft is treated as wrecked or salvage, and the insurer must get a salvage certificate of title (marked "SALVAGE") within 30 days; rebuilders and dealers acquiring such a vehicle (worth $500 or more before damage) must also apply within 30 days, for a $20 fee. After repairs, the owner may get a regular title by surrendering the salvage title with a salvage theft examination certificate, and every later title and registration will show the vehicle was previously titled as salvage. Sellers must also disclose damage on the title when repair costs exceeded 70% of fair market value (with exceptions, such as vehicles more than seven model years old).

File a complaint with the Iowa Insurance Division using its online complaint form (English or Spanish), which the Division calls the most efficient method; you receive an automated confirmation email. Include the policy, policy number, correspondence, claim forms and numbers, relevant dates and names of representatives. The Division can only handle policies issued in Iowa (or group policies issued to an Iowa employer). The process typically takes 30 to 45 days. Phone: 515-654-6600; address: 1963 Bell Avenue, Suite 100, Des Moines, IA 50315.