Total Losses Hit 23.1%: An All Time High In Arizona

Total loss is often something that leaves customers uncertain how the process will proceed with the insurance company.  Often customers are just not familiar with the legalities, the process, and their rights when a vehicle is deemed a total loss.  There are different requirements throughout the US but in Arizona a total loss is determined by a total loss formula.

The Cost of Repairs + Salvage Value > Actual Cash Value (ACV)

One important thing to remember is that salvage values change with market and demand.  Making this formula hard to accurately predict.  The higher the market is for salvage vehicles the more total loss vehicles.

As a collision shop it is our job to produce an estimate that properly reflects the repairs needed to the vehicle.  Our estimating system will give us a percent threshold that we use as a guide to know when the repair maybe in need of evaluation by the insurance company as a total loss. 

If the insurance company does deem the vehicle a total loss, the owner of the vehicle has some options available to them.  Over the years we have had many customers retain salvage of their vehicle and proceed with repairs.  Not all vehicles are a good option to repair after being deemed total loss.  This depends on the extent of the damage, our ability to have confidence in any additional costs that may occur during the repairs, and the mechanical health of the vehicle.  If you are considering the option of repairing a total loss vehicle, ensure that you have a trusted repair facility to guide you through that option with transparency. 

When retaining a total loss vehicle, the insurance company will take the market value of the vehicle and deduct the salvage value for your payout.  You will need to obtain a salvage title and after repairs are completed you will be able to retain a rebuilt title from the DMV.

The cons of keeping a salvage title are that the vehicle will have a 20-40% decrease in market value after repairs are completed.   There may also be issues with insurance coverage.  Often carriers will not offer full coverage on a salvage title vehicle.

Total losses are on the rise, hitting a new high in 2025 of 23.1%.  Using a facility that you can trust can help you navigate a total loss situation. 

https://autoclaimconsultants.com/2025/10/arizona-total-loss-threshold