Illinois · Total lossTotal-loss car insurance rules in Illinois
Illinois decides total losses with a repair-plus-salvage formula rather than a single fixed percentage, and the offer you get is built by valuation software, not by hand. Here's how Illinois handles total-loss valuations, sales tax, deadlines, and the appraisal clause.
Illinois at a glance
- When a car is “totaled”
- Case-by-case
- Sales tax on the replacement
- Included (≈ 6.25%)
- Title & registration fees
- Yes
- Deadline to pay after agreement
- 30 days
- Deadline for first contact
- Varies
- Appraisal clause
- Available by policy (contractual)
On total loss, sales tax + transfer/title fees are reimbursable within 30 days of settlement if the insured purchases a replacement (50 IL Admin Code 919 Exhibit A; 215 ILCS 5/154.6(r)). IL state sales/use tax 6.25% + local up to ~4.75%.
How Illinois values a total loss
50 IL Admin Code 919 Exhibit A (Total Loss Automobile Claims) — insurer must determine RETAIL value using guide books or computerized data (dealer written quotes acceptable if guide silent); NEWSPAPER ADVERTISEMENTS are NOT acceptable sources (unique to IL); collision-damage deductions uncapped BUT deductions for wear, missing parts, and rust are capped at $500 TOTAL, itemized (unique to IL); replacement-vehicle option must be specific comparable make/model in equal-or-better condition (vehicle <3 yrs old must come with a warranty from a licensed dealer). 215 ILCS 5/154.6(o)-(r) governs improper auto claims practices; (r) = failing to pay replacement-vehicle use/occupation tax, title and transfer fees.
Salvage & branded titles in Illinois
625 ILCS 5/3-117.1 (salvage); 625 ILCS 5/3-117.3 (Junking Or Salvage Certificates; Insurance Company; Salvage Dealer — incl. § 3-117.3(b) 'Unlawful sale of salvaged vehicle by an insurance company,' eff. 1/1/2024); 625 ILCS 5/5-104.3 (Disclosure of Rebuilt Vehicle — the actual rebuilt-disclosure cite: 'No person shall knowingly, with intent to defraud or deceive another, sell a vehicle for which a rebuilt title has been issued unless that vehicle is accompanied by a Disclosure of Rebuilt Vehicle Status form, properly signed and delivered to the buyer'; penalty Class A misdemeanor, second/subsequent offense Class 4 felony); 625 ILCS 5/3-104.5 (NMVTIS branding). Brands: Salvage, Rebuilt, Junk, Prior Out-of-State Junk (foreign junk ≥120 months old).
How Moe handles total loss in Illinois
Knowing the rule is one thing — applying it against a carrier is another. Moe builds your case to Illinois’s rules, drafts every letter for your approval, tracks the deadlines, and only pings you when there’s a decision to make.
Illinois total loss — common questions
- When is a car considered a total loss in Illinois?
- Illinois doesn't set a single fixed percentage. Insurers generally apply a total-loss formula — comparing the repair cost (often plus the car's salvage value) against its actual cash value — to decide whether to total it rather than repair it.
- Does Illinois require the insurer to pay sales tax on a totaled car?
- Yes — in Illinois the total-loss settlement is generally expected to include sales tax (around 6.25%) and the fees needed to replace the vehicle. It's a line item that's easy to overlook in a quick offer.
- How long does my insurer have to pay a total-loss claim in Illinois?
- Once you and the insurer agree on the amount, Illinois generally requires payment within about 30 days. The insurer also typically has to make initial contact promptly after the claim.
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This page summarizes Illinois’s car-accident claim rules for general information — it is not legal advice, and the rules can change. What applies to your claim depends on your policy and the specific facts.