Total Loss in Kansas: The 75% Threshold and What Your Car Is Worth
Kansas uses a 75% threshold for newer cars: a late model vehicle is a salvage vehicle when the total cost of repair is 75% or more of its fair market value. Kansas is also one of the clearest states on sales tax: insurers must pay it, plus title and registration fees, even if you keep the car. Here is how the rule works and what to do if the offer looks low.
Quick note: this is about total loss, when the car is not being repaired. If your car was repaired but is now worth less, that is diminished value, a different process.
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Key takeaways
- Kansas uses a 75% threshold: a late model vehicle is salvage when the total cost of repair is 75% or more of its fair market value.
- A late model vehicle is one from the model year of the damage or the six model years before it.
- Exterior cosmetic damage from windstorm or hail does not count, and tires, sound systems and sales tax on parts are left out of the repair cost.
- Kansas insurers must pay state and local sales tax plus title and registration fees on a total loss, whether or not you keep the car or buy another one.
- If the offer looks low, an independent total loss appraisal gives you a documented Kansas market value to challenge it.
What is Kansas’s total loss threshold?
Kansas’s threshold is 75% for late model vehicles. Under state law, a late model vehicle is a salvage vehicle when the total cost of repair is 75% or more of its fair market value, not counting exterior cosmetic damage from windstorm or hail. A late model vehicle is one with a model year of the year it was damaged or the six model years before.
Fair market value means the retail value of the car from a recognized compilation or automated database, or a market survey of comparable cars. The cost of repairs is the estimated or actual retail cost of parts plus labor at customary rates, leaving out tires, sound systems and sales tax on parts. (Source: K.S.A. 8-197. General information, not legal advice; confirm the current rule for your situation.)
Kansas total loss at a glance
Item | Kansas |
Threshold | 75% or more |
Applies to | Late model cars: model year of the damage plus the 6 before it |
What counts | Retail parts and customary labor |
Left out | Hail and windstorm cosmetic damage, tires, sound systems, sales tax on parts |
Compared with | Retail fair market value |
Sales tax and fees | Always paid, even if you keep the car |
What you are paid | Actual cash value plus sales tax and fees, less your deductible |
How they decide if your car is totaled in Kansas
The insurer adds up the retail cost of parts and labor to repair your car and compares it to its retail fair market value. For a late model car, once that cost reaches 75% of the value, the car is a salvage vehicle. For example, if your car was worth $20,000, a repair cost of $15,000 or more makes it salvage in Kansas. Cosmetic hail or windstorm damage, tires and sound systems do not count toward the 75%.
Because the whole decision rests on your car’s value, getting that number right matters. It is worth understanding actual cash value versus fair market value.
Does a Kansas total loss payout include sales tax and fees?
Yes, and Kansas is unusually clear about it. Under K.A.R. 40-1-34, as the Kansas Insurance Department explained in Bulletin 2013-1, a cash settlement must equal the actual cash value of a comparable car, plus all state and local sales taxes needed to buy a comparable car, plus all fees to title and register it.
- Sales tax is calculated by multiplying the comparable car’s actual cash value by the sales tax rate where your car was mainly kept on the date of loss.
- The insurer must pay the sales tax and fees whether it takes the title or you keep the car.
- It must also pay them whether or not you buy and register another car.
- Only then are your deductible and, if you keep the car, its salvage value subtracted.
How your total loss payout is set
Your payout should equal what it would cost to buy the same car again today in your local Kansas market. Insurers often use a third-party valuation report, such as a CCC valuation, that compares similar local vehicles, then adjusts for your car’s details. Here is what moves the number, and for a closer look, see what your totaled car is worth:
What affects your payout | How it moves the number |
Mileage | Lower miles raise value; a wrong higher reading lowers it |
Condition | Clean condition raises value; heavy deductions lower it |
Trim and options | Factory options and higher trims add value, if counted |
Local market | Prices for the same car in Kansas set the baseline |
Comparison cars | The vehicles used for comparison can pull the number up or down |
Can you keep your totaled car in Kansas?
Often, yes, if your insurer agrees. The insurer subtracts the car’s salvage value from your payout, but in Kansas it still owes the sales tax and title and registration fees. A late model car that meets the 75% test is a salvage vehicle, so it will need a salvage title. Ask for the salvage deduction in writing before you decide.
What to do if your Kansas total loss offer looks low
Read the valuation report line by line and compare it to current listings for the same year, make and model in Kansas. Look for the wrong mileage, missing options, or comparison cars that do not match yours. Then check the tax line: it should equal the comparable car’s value times your local sales tax rate, plus title and registration fees, even if you are keeping the car.
If your research lands above the offer, ask for a corrected valuation. Then check your policy for an appraisal clause, and see how to dispute a total loss settlement offer step by step. The Kansas Insurance Department’s Consumer Assistance Division can also answer questions, at 785-296-3071.
How an independent appraisal helps in Kansas
Kansas defines fair market value to include a market survey of comparable cars, which is what a documented appraisal provides. Our total loss appraisal service values your vehicle using comparable vehicles in your local market and gives you the documentation to challenge a low offer. You stay in contact with your insurance company, and we advise you on what to say and what to do next. If the appraisal clause is invoked, DVAC negotiates and resolves the value with the third-party appraiser the insurance company hires.
Look at a sample total loss appraisal report to see what the insurer receives.
Kansas total loss questions
Is Kansas a 75% total loss state?
Yes, for late model cars. They are salvage when the total cost of repair is 75% or more of fair market value.
Does hail damage count toward Kansas’s 75%?
Not if it is only exterior cosmetic damage from windstorm or hail.
Does my Kansas insurer have to pay sales tax if I keep my car?
Yes. Kansas requires sales tax and title and registration fees whether you keep the car or not, and whether or not you buy another one.
What does an insurer pay for a totaled car in Kansas?
The actual cash value of a comparable car plus sales tax and fees, less your deductible if you claim on your own policy, and less the salvage value if you keep the car. Learn more in total loss settlements: what you need to know.
Get a free Kansas total loss appraisal consultation
If your Kansas offer feels low, start your appraisal or call (877) 879-0101 for a free consultation, and we will give you a documented market value to support your claim.
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Total Loss Appraisal Report:
Wondering what’s in a DVAC appraisal? Take a look at this recent appraisal we completed for a client.
