Total Loss in Texas

When an insurance company declares a vehicle a total loss in Texas, it is making a financial determination based on repair costs, vehicle value, and salvage considerations.

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

How Total Loss Claims Are Handled in Texas

Total loss claims in Texas are governed by the Texas Insurance Code, including provisions related to prompt payment, claim investigation, and unfair settlement practices.

These laws require insurers to evaluate claims using reasonable methods, support settlement offers with appropriate documentation, and communicate decisions clearly to vehicle owners.

While Texas law does not guarantee a specific valuation, it is intended to ensure total loss settlements are handled fairly, promptly, and based on complete information.

What a Total Loss Means in Texas

A vehicle is typically considered a total loss when the cost to repair it, combined with its salvage value, approaches or exceeds the vehicle’s actual cash value before the accident.

Actual cash value is based on market data, including year, make, model, mileage, condition, and comparable vehicle sales.

Common Total Loss Valuation Issues

Total loss offers may appear final, but valuation issues are common in Texas claims.

• Comparable vehicles that are not truly comparable
• Missing options or incorrect trim levels
• Condition or mileage adjustments that are unclear
• Market data that does not reflect local conditions

Before You Accept a Total Loss Settlement

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

Reviewing how the vehicle was valued helps ensure the settlement reflects complete and accurate information.

Need Help Reviewing a Texas Total Loss Offer

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

Related topics: Texas Repair Rights | Texas Diminished Value