Total Loss in Illinois

When an insurer declares your vehicle a total loss in Illinois, the decision is based on a comparison of repair costs, salvage value, and the vehicle’s market value before the accident.

This page explains how total loss claims are handled under Illinois law, what standards insurers are expected to follow, and what you should understand before accepting a settlement offer.

How Total Loss Claims Are Governed in Illinois

Illinois does not set a specific statutory percentage for when a vehicle is considered a total loss. Instead, insurers typically use a total loss formula that compares repair costs plus salvage value to the vehicle’s actual cash value immediately before the accident.

If the total of repairs and salvage equals or exceeds the actual cash value, the insurer may declare the vehicle a total loss.

Illinois law also requires insurers to provide a clear explanation of how the total loss determination was made, including market value and salvage calculations.

How Total Loss Values Are Determined

Total loss settlements in Illinois are based on the vehicle’s actual cash value immediately before the accident.

Insurers typically consider local market conditions, vehicle mileage, condition, options, and comparable vehicle data when calculating value.

Replacement or Cash Settlement Options

Illinois regulations require insurers to offer either a replacement vehicle comparable to your totaled vehicle or a cash settlement based on its actual cash value.

If you choose a cash settlement and purchase or lease a replacement vehicle within the required timeframe, the insurer must also address applicable tax, title, and transfer fees when properly documented.

Retaining Your Totaled Vehicle

Illinois law allows you to keep a totaled vehicle only under specific circumstances, such as when the vehicle is nine model years old or older or when it has hail damage that does not affect operational safety.

If you retain the vehicle, the total loss settlement is typically reduced by its salvage value.

Before You Accept a Total Loss Settlement

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

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

Need Help Reviewing an Illinois Total Loss Offer

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

Related topics: Illinois Repair Rights | Illinois Diminished Value