If you have ever tried to figure out what the total loss threshold in NY is, you’ve probably run into confusing or conflicting information. Some people believe New York totals a vehicle at 75 percent of its value. Others claim New York uses a fixed formula. The truth is that New York does not force insurers to declare a total loss at any percentage. The 75 percent figure comes from salvage-title rules, not insurance requirements.
What Is the Total Loss Threshold in NY Under Salvage Rules?
New York requires a vehicle to be branded “salvage” or “rebuilt salvage” if the estimated repair cost exceeds 75 percent of the vehicle’s pre-loss retail value. This rule applies to title branding only. It does not control whether an insurer must declare a total loss.
What Is the Total Loss Threshold in NY According to Regulation 64?
Total loss settlements in New York are governed by Insurance Regulation 64 (11 NYCRR 216.7). This regulation explains how insurers must determine actual cash value, handle salvage deductions, and document valuation methods. It does not establish any percentage threshold that forces a total loss. Insurers may total earlier or later depending on the facts of the claim, repair complexity, and economic viability.
Why These Rules Get Confused
People often mix up salvage-title rules with total-loss decision-making. Repair facilities focus on repair cost. The DMV focuses on title branding. Insurers focus on ACV and settlement standards. Consequently, consumers hear all three and assume they apply the same way. They do not.
The Practical Formula Used in the Industry
Although not part of New York law, many professionals look at whether repair cost plus salvage value approaches or exceeds ACV. This total loss formula helps guide decisions, but it is not mandated by statute.
The Real Answer
The total loss threshold in NY is not a percentage. New York does not mandate a total loss at 75 percent or any other number. The 75 percent rule belongs exclusively to salvage-title guidelines. Total-loss settlements follow Regulation 64, which centers on actual cash value and proper valuation practices.
Why This Matters
Understanding the difference prevents frustration and helps claimants, adjusters, and repair facilities communicate more clearly. Title law governs how the vehicle is branded, and Regulation 64 governs how insurers settle the loss.
Everything else is economics and judgment.
By partnering with Auten Claims Management, you can leverage our expertise to make informed decisions that protect the interests of your company and policyholders. Take the first step towards better claim management by contacting us today to learn more about our personal injury claims investigation services. Together, we can achieve optimal outcomes for all parties involved. We’ll get the facts, so you can make the right decisions on your claims. We’re on your team. We’re on your team. Contact us today.