Auto InsuranceQuestion 28 of 215
California considers a vehicle to be a 'total loss salvage vehicle' for title-branding purposes when:
a.Any repair would be required, regardless of cost
b.The vehicle has any cosmetic damage visible from the exterior
c.The cost of repair plus salvage value would equal or exceed the vehicle's actual cash value, so the insurer settles the claim on a total-loss basis
d.The vehicle is more than ten years old
Explanation
Under Vehicle Code §544 and common insurer practice, a vehicle is considered a total loss when the cost to repair plus the salvage value is equal to or greater than its pre-loss actual cash value. At that point an insurer will normally pay the insured the ACV (less deductible) and take title to the salvage. California title branding (salvage / non-repairable) follows; age and cosmetic damage alone do not trigger total-loss status.
Law Reference: Cal. Veh. Code §544 (total loss salvage definition)Practice all 215 questions free — no signup required.
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