Total Loss in Georgia

After a crash, if your vehicle’s damage is so extensive that repairs are no longer economically reasonable, it may be declared a total loss.

This page explains how total loss claims are handled in Georgia, what valuation rules apply, and what you should understand before you accept a settlement offer.

How Total Loss Claims Are Governed in Georgia

Georgia has a total loss rule that guides how insurers handle claims when a vehicle is so damaged that it should be replaced rather than repaired.

These standards do not set a single fixed percentage threshold by statute, but they do require that settlements be based on reasonable valuation methods and that the insurer document the basis for any offer made to you.

What a Total Loss Means

A vehicle is generally treated as a total loss when the cost to repair it, plus the vehicle’s salvage value, approaches or exceeds its fair market value before the accident.

Insurers commonly use a total loss formula that compares repair costs and salvage value to actual cash value (ACV) to make this determination.

How Total Loss Values Are Determined

When your car is declared a total loss in Georgia, insurers base settlements on the vehicle’s "actual cash value" what it was worth just before the accident.

Insurers may use local market sales, published valuation databases, and dealer quotes to support their valuation.

You have the right to ask how the value was calculated and what comparables were used.

Cash Settlement or Replacement Vehicle

Georgia’s total loss standards allow the insurer to either:

• Pay a cash equivalent settlement based on what it would cost to purchase a comparable vehicle, including applicable taxes and fees
• Replace your vehicle with a similar one that matches make, model year, condition, and options

If the insurer chooses replacement, that vehicle must be reasonably comparable and available for your inspection before settlement.

Common Total Loss Problems

Total loss offers often seem final, but valuation problems are common and can reduce the amount you are paid.

• Comparable vehicles that are not truly comparable
• Incorrect trim levels or missing options
• Unsupported condition deductions
• Market assumptions that do not match your area
• Failure to include all applicable taxes and fees

Before You Accept a Total Loss Settlement

Once you accept a total loss settlement, correcting valuation errors becomes harder.

Reviewing how the offer was calculated, what comparables were used, and whether all taxes, title, and transfer fees were included helps make sure you are not leaving money on the table.

Need Help Reviewing a Georgia Total Loss Offer

EstiVerify reviews total loss valuations to identify missing value, unsupported deductions, and assumptions that may reduce your payout.

Related topics: Georgia Repair Rights | Georgia Diminished Value