How Total Loss Claims Are Governed in California

Total loss claims in California are handled under the state’s Fair Claims Settlement Practices Regulations, which establish standards for how insurers investigate, evaluate, and settle auto insurance claims.

These regulations require insurers to use reasonable and supportable valuation methods, clearly document how vehicle values are determined, and communicate settlement information accurately.

While the regulations do not guarantee specific settlement amounts, they are intended to ensure valuations are based on complete and consistent information.

These standards are enforced by the California Department of Insurance.

How Total Loss Values Are Determined

Insurers calculate total loss settlements using valuation tools, market data, and comparable vehicle information.

Vehicle options, prior condition, mileage, and local market factors all influence the final valuation.

You are entitled to understand how the value was calculated before agreeing to a settlement.

Before You Accept a Total Loss Settlement

Once a total loss settlement is accepted, correcting valuation issues becomes more difficult.

Reviewing the valuation and understanding how it was calculated helps ensure the settlement reflects accurate and complete information.