Alabama Totaled Vehicle Law: 75% Threshold & Your Options

In Alabama, a vehicle is a total loss (totaled) if repair costs exceed 75% of its pre-accident actual cash value (ACV) (Ala. Code § 32-8-87).

Process

1. Insurer assesses ACV (market value pre-crash).
2. If repair estimate > 75% ACV → total loss declared.
3. Insurer pays ACV (minus deductible if at-fault) + tax/title/license fees for replacement.
4. Insurer takes title; issues salvage certificate.

Your Options

• Accept Settlement: Take ACV, surrender car, buy replacement.
• Negotiate ACV: Provide comps (similar cars sold nearby), receipts for recent upgrades, maintenance records. Hire independent appraiser if needed.
• Retain Salvage (Owner-Retained): Keep car, get ACV minus salvage value. You repair, get rebuilt title after inspection. Insurance may be harder/pricier.
• Dispute Total Loss: If repair < 75% but insurer totals it—demand justification; complain to AL Dept of Insurance.

Key Points

• 75% is statutory—insurer cannot use lower threshold.
• ACV ≠ replacement cost—it's what your car sold for yesterday.
• Gap insurance covers loan/lease > ACV.
• Diminished value claim possible if not totaled but repaired.

Document everything. Know your car's value. Don't accept first offer without verification.