Total Loss Insurance Rules

in New York

Know the total loss rules and how to Leverage a better payout from insurance

Total Loss in New York

When an insurance company declares a vehicle a total loss in New York, it is making a financial determination based on repair cost, salvage value, and the vehicle’s market value before the accident.

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

How Total Loss Claims Are Governed in New York

Total loss claims in New York are governed by the New York Insurance Law and claims handling regulations issued by the New York State Department of Financial Services, commonly referred to as Regulation 64.

These rules require insurers to investigate claims reasonably, use supported valuation methods, and communicate settlement decisions clearly and accurately to vehicle owners.

While New York law does not guarantee a specific settlement amount, it is intended to ensure total loss valuations are fair, consistent, and based on complete information.

What a Total Loss Means in New York

A vehicle is typically treated as a total loss when the cost to repair it, combined with its salvage value, equals or exceeds a significant portion of its actual cash value before the accident.

In practice, many insurers in New York use a benchmark of approximately seventy five percent of actual cash value when evaluating whether a vehicle should be totaled.

How Total Loss Values Are Determined

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

Actual cash value is determined using accepted valuation methods, including comparable vehicle sales, published valuation data, and adjustments for mileage, condition, and equipment.

New York claims practice requires valuation methods to be reasonable and supportable, and insurers must be able to explain how a settlement figure was calculated.