Louisiana uses a 75% total loss threshold, meaning your vehicle is declared a total loss when the cost of repairs equals or exceeds 75% of its actual cash value (ACV). Specifically, if your car is worth $20,000 and repair estimates reach $15,000 or more, your insurer will total the vehicle rather than authorize repairs. Additionally, Louisiana law (R.S. 32:702) gives insurers the option to total a vehicle at a lower percentage if they determine repairs are not economically feasible.
How Louisiana's Total Loss Calculation Works
When your vehicle is damaged in Louisiana, the insurance company will obtain repair estimates and determine your vehicle's actual cash value. Furthermore, the ACV is based on your vehicle's year, make, model, mileage, condition, and local market comparables — not what you paid for it or what you owe on your loan. In practice, most Louisiana insurers use valuation services like CCC, Mitchell, or Audatex to determine ACV.
Key Details to Consider
Importantly, the 75% threshold in Louisiana is lower than some neighboring states (Mississippi uses 75%, Alabama also uses 75%). As a result, vehicles with moderate-to-severe damage are more likely to be totaled in Louisiana. Consequently, if repairs are close to the threshold, you should carefully review both the repair estimate and the ACV determination — errors in either can affect whether your vehicle is totaled or repaired.
What Happens After Your Car Is Totaled in Louisiana
Once your insurer declares a total loss in Louisiana, they will offer you the actual cash value minus your deductible. Specifically, you have the option to accept the payout and surrender the vehicle, or you can retain the salvage vehicle and receive the ACV minus both your deductible and the salvage value. Additionally, if you still owe money on a car loan, gap insurance covers the difference between the ACV payout and your remaining loan balance.
Notably, Louisiana law requires insurers to include applicable sales tax in the total loss settlement if you purchase a replacement vehicle. Furthermore, you are entitled to the reasonable costs of temporary transportation while your claim is processed.
How to Maximize Your Total Loss Payout in Louisiana
If you believe your insurer's ACV determination is too low, Louisiana law gives you the right to dispute it. In particular, gather evidence of comparable vehicles for sale in your area with similar mileage and condition — dealer listings, online marketplaces, and private sale ads all help establish fair market value. Additionally, document any recent upgrades, new tires, or maintenance that increases your vehicle's value above the baseline estimate.
For help navigating a total loss claim or ensuring you have adequate coverage before an accident, get a free quote from Bridgeway Insurance or call 601-264-0541.
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