When a Car Is a Total Loss in Michigan
How Michigan decides a car is a total loss, salvage title rules, and how to complain about a claim.
Short answer: When an insurer acquires a vehicle in a claim settlement, or the owner keeps it, the insurer must handle branding by repair cost: if the estimated repair cost (parts and labor) is at least 75% but less than 91% of the vehicle's pre-damage actual cash value, a salvage certificate of title… MCL 257.217c
| Total loss rules | When an insurer acquires a vehicle in a claim settlement, or the owner keeps it, the insurer must handle branding by repair cost: if the estimated repair cost (parts and labor) is at least 75% but less than 91% of the vehicle's pre-damage actual cash value, a salvage certificate of title is required; at 91% or more, a scrap certificate of title is required. The insurer may not sell the vehicle without first receiving a salvage or scrap title. Source: MCL 257.217c |
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| Complaints about an insurer | If you cannot resolve a problem with your auto insurer or agent, file a complaint with the Michigan Department of Insurance and Financial Services (DIFS) using its online complaint form (difs.state.mi.us/Complaints/FileComplaint.aspx); a printable form can be mailed, emailed or faxed. DIFS will contact the company, agency or agent for a written response. Phone: 877-999-6442 (toll free, Monday to Friday, 8 a.m. to 5 p.m.). Auto complaint page: https://www.michigan.gov/autoinsurance/file-a-complaint |
More Michigan car insurance & vehicle laws
- Minimum Car Insurance in Michigan
- Driving Without Insurance in Michigan
- SR-22 Insurance in Michigan
- Transferring a Car Title in Michigan
- All Michigan car insurance & vehicle laws rules
FAQ
When is a car a total loss in Michigan?
When an insurer acquires a vehicle in a claim settlement, or the owner keeps it, the insurer must handle branding by repair cost: if the estimated repair cost (parts and labor) is at least 75% but less than 91% of the vehicle's pre-damage actual cash value, a salvage certificate of title is required; at 91% or more, a scrap certificate of title is required. The insurer may not sell the vehicle without first receiving a salvage or scrap title.
How do you file a complaint against a car insurance company in Michigan?
If you cannot resolve a problem with your auto insurer or agent, file a complaint with the Michigan Department of Insurance and Financial Services (DIFS) using its online complaint form (difs.state.mi.us/Complaints/FileComplaint.aspx); a printable form can be mailed, emailed or faxed. DIFS will contact the company, agency or agent for a written response. Phone: 877-999-6442 (toll free, Monday to Friday, 8 a.m. to 5 p.m.).
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.