Total Loss in Maryland: The 75% Threshold and What Your Car Is Worth
Maryland uses a 75% total loss threshold: your car is a total loss when the cost to repair it is 75% or more of its fair market value just before the accident. Maryland also sets clear rules for the settlement offer, including taxes, fees and what counts as a comparable car. Here is how the rule works, what your insurer must give you, 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
- Maryland uses a 75% threshold: a car is a total loss when repairs cost 75% or more of its fair market value just before the accident.
- Insurers may count rental car costs and likely hidden damage when they work out that 75%.
- A cash settlement must include all applicable taxes and registration fees.
- A comparable car must be the same make and model, the same year or newer, with the same major options and mileage within 4,000 miles or 10%, whichever is greater.
- If the offer looks low, an independent total loss appraisal gives you a documented Maryland market value to challenge it.
What is Maryland’s total loss threshold?
Maryland’s threshold is 75%. According to the Maryland Insurance Administration, a total loss means the cost to repair the vehicle is 75% or greater than its fair market value immediately before the loss. When working this out, the insurer may include rental car costs and potential hidden damage. A totaled car is branded salvage, and the Maryland MVA issues a salvage certificate. (General information, not legal advice; confirm the current rule for your situation.)
Maryland total loss at a glance
Item | Maryland |
Threshold | 75% or more |
Rule type | Percentage threshold |
What counts | Repair cost, which may include rental costs and likely hidden damage |
Compared with | Fair market value just before the loss |
Comparable car | Same make and model, same year or newer, same major options |
Mileage of comparables | Within 4,000 miles or 10%, whichever is greater |
Taxes and fees | Included in a cash settlement |
What you are paid | Actual cash value plus taxes and registration fees, less your deductible |
How they decide if your car is totaled in Maryland
The insurer estimates the repair cost and compares it to your car’s fair market value just before the accident. Once the estimate reaches 75% of that value, the car is a total loss. For example, if your car was worth $20,000 before the accident, a repair estimate of $15,000 or more makes it a total loss in Maryland. Because the insurer may add rental costs and likely hidden damage, a car can reach 75% sooner than the visible repair bill suggests.
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.
What Maryland requires in your settlement offer
Maryland’s rules for valuing a totaled car are in COMAR 31.15.12. As the Maryland Insurance Administration explains them:
- The offer should reflect your car’s actual cash value immediately before the loss, based on the retail value of a substantially similar car from a nationally recognized valuation manual or database, or a dealer quote at a reasonably convenient location.
- A comparable car must be the same make and model, the same year or newer, with at least the same major options, in similar or better condition, and with mileage within 4,000 miles or 10%, whichever is greater. The mileage rule does not apply to limited production or specialty cars, or cars more than 10 model years old.
- The cash settlement must include all applicable taxes and registration fees.
- The insurer generally has 10 days to make a cash settlement offer.
What you can ask your insurer for
In writing, you can ask your insurer for the settlement offer, an explanation of how it was calculated, a detailed breakdown of the total loss value including the value of your options, a list of all deductions, and a copy of the inspection guidelines used to rate your car’s condition. Maryland requires the insurer to respond within seven business days of your written request. These documents show exactly where a low offer came from.
Can you keep your totaled car in Maryland?
Yes. If you keep the car, the settlement is reduced by its salvage value, and the car is branded salvage. You will need to send your original title to the insurer before you receive the settlement check, and the insurer notifies the MVA, which issues a salvage certificate. Ask for the salvage deduction in writing before you decide.
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 Maryland market. Insurers usually set it with a third-party valuation report, such as a CCC valuation, that compares similar 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 Maryland set the baseline |
Comparison cars | The vehicles used for comparison can pull the number up or down |
What to do if your Maryland total loss offer looks low
Ask for the breakdown, deductions and inspection guidelines your insurer must provide, and check them against Maryland’s comparable car rules. Are the comparable cars the same make, model and major options? Is the mileage within 4,000 miles or 10% of yours? Are taxes and registration fees included? Look for the wrong mileage, missing options, or condition deductions that do not match your car.
Maryland lets you make a counteroffer, but you must back it up with documentation, such as dealer quotes or listings for similar cars. Check your policy for an appraisal clause, and see how to dispute a total loss settlement offer step by step. For questions or to file a complaint, you can contact the Maryland Insurance Administration at 1-800-492-6116.
How an independent appraisal helps in Maryland
A documented appraisal is the clearest way to support a Maryland counteroffer. 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.
Maryland total loss questions
Is Maryland a 75% total loss state?
Yes. A car is a total loss when the cost to repair it is 75% or more of its fair market value just before the loss.
Does my Maryland insurer have to pay taxes and fees on a totaled car?
Yes. A cash settlement must include all applicable taxes and registration fees.
How long does a Maryland insurer have to respond to my request for the valuation?
Seven business days from your written request.
What does an insurer pay for a totaled car in Maryland?
The car’s actual cash value plus taxes and registration 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 Maryland total loss appraisal consultation
If your Maryland 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.
