Total loss laws in Kansas

When is a car totaled in Kansas?

Short answer: Kansas uses 75% of the car's value as a salvage-title test (K.S.A. 8-197(b)(2)(B)-(C)). It does not stop the insurer from totaling a car below that.

A 'late model' vehicle (model year of the loss year or the six preceding years) is a salvage vehicle when the total cost of repair is 75% or more of its fair market value just before the damage, unless the damage was only exterior cosmetic damage from windstorm or hail. Any vehicle the insurer determines to be a total loss and takes title to is also salvage. For this test, 'fair market value' is retail value from a nationally recognized compilation (including an automated database) or a market survey of comparable vehicles, and 'cost of repairs' excludes tires, sound systems and sales tax on parts. This is a titling rule; it does not stop an insurer from totaling a car below 75%.

Source: K.S.A. 8-197(b)(2)(B)-(C), (b)(6)-(8)

Many online tables mix up title-branding rules with the insurer's own decision. Compare the total loss threshold in every state.

Does insurance pay sales tax on a total loss in Kansas?

Short answer: Yes. Kansas requires a cash settlement for a total loss on your own policy to include sales tax and transfer fees such as title and registration (K.A.R. 40-1-34(k)-(m)).

A cash settlement must be based on the actual cost, less the deductible, to buy a comparable automobile 'including all applicable taxes, license fees and other fees incident to transfer of evidence of ownership'; a replacement offer must likewise carry those taxes and fees. Kansas deleted the words 'first party' from model s. 9(a) and replaced 'insured' with 'claimant' in s. 9(a)(1). For third-party total losses, insurers 'shall include consideration of' applicable taxes, license fees and other transfer fees and must document in the file how the settlement was reached (model s. 9(h) as added). Kansas Insurance Department Bulletin 2013-1 (Nov. 20, 2013) reportedly reminded insurers to include sales taxes and fees in all motor vehicle total-loss settlements (we have not seen the bulletin itself). No proof-of-purchase condition appears in the regulation.

Source: K.A.R. 40-1-34(k)-(m), (o) (Kansas changes to NAIC model ss. 9(a), 9(a)(1)-(2), 9(h)); KID Bulletin 2013-1 (secondary)

Tax on a replacement car in Kansas

6.5% state rate plus city and county local tax. The dealer charges the combined rate at its location; on private or out-of-state purchases the county treasurer collects the higher of the sale-site or registration-address rate.

Source: https://www.ksrevenue.gov/pub1526.html

See the sales tax and fee rule in every state.

How must the insurer value your car in Kansas?

Kansas adopts the NAIC Unfair Claims Settlement Practices Model Regulation (January 1981 edition) by reference, with changes. Cash value must come from a statistically valid source or method that covers at least 85% of makes and models for 15 model years with all major options, and gives values based on current data for the local market area, defined as 50 miles around where the car was principally garaged. A 'comparable automobile' is the same make, model, year, style and condition, with all major options. Any deviation must be documented with the particulars of the car's condition, and deductions, including salvage, must be 'measurable, discernible, itemized and specified as to dollar amount' and fully explained to the claimant. Outside total-loss situations, the insurer may not offer a first-party cash settlement lower than the cost of repairs unless the insured agrees.

Source: K.A.R. 40-1-34 (adopting the NAIC Unfair Claims Settlement Practices Model Regulation, Jan. 1981 ed., with Kansas changes to model ss. 8(e), 9(a)(2)-(3), 9(j); last amended Jan. 10, 2003)

To check the numbers in your own report, read the CCC valuation report, line by line and how projected sold and typical negotiation deductions work.

How long does the insurer have to pay a total loss in Kansas?

Short answer: Kansas rules set no fixed payment deadline, but a decision is due within 15 days after proof of loss (reported). Kansas figures come from a law-firm compendium and are approximate.

K.A.R. 40-1-34 adopts the January 1981 NAIC model regulation, so the model's deadlines apply in Kansas. A law-firm insurance compendium reports these as: acknowledge a claim within 10 days, accept or deny a first-party claim within 15 days after proof of loss, and finish the investigation within 30 days or send status letters every 45 days; whether these are calendar or working days was not confirmed from the official model text, so treat them as approximate. Kansas-specific rules confirmed in the regulation: an insurer negotiating with an unrepresented claimant must give written notice before a limitation period may expire, 30 days ahead for first-party and 60 days ahead for third-party claimants; and when a claimant reports within 30 days after receiving the claim draft that a comparable vehicle cannot be bought for that amount, the insurer must reopen the file within 5 business days.

Source: K.A.R. 40-1-34 (NAIC 1981 model ss. 6, 8 as adopted; Kansas additions to s. 8(h) and s. 9(i)); ALFA International Kansas Insurance Law compendium (secondary)

Compare claim deadlines in every state.

Can you negotiate a total loss offer in Kansas?

Short answer: Yes. You can reject the offer in writing, ask for the full valuation report and the reason for each deduction, and send your own evidence. Kansas also lets you ask the insurer to reopen the claim within 30 days after receiving the claim draft if you cannot buy a comparable car for the amount paid (K.A.R. 40-1-34). The Kansas Insurance Department takes complaints about claim handling.

Yes. If the claimant notifies the insurer within 30 days after receiving the claim draft that a comparable vehicle cannot be bought for that amount, the insurer must reopen the file within 5 business days and either pay the difference for the comparable vehicle the claimant located (or negotiate and complete its purchase), or offer a replacement. The claimant can also demand the itemized, dollar-specific basis for every deduction, insist on taxes and fees (Bulletin 2013-1), invoke the policy's appraisal clause if there is one, file a complaint with the Kansas Insurance Department, or sue in small claims court.

1. Ask the adjuster in writing for the complete valuation report and the list of comparable vehicles.
2. Check it line by line: negotiation deductions, condition ratings, comparables, tax and fees. How to read the report.
3. Send a written rebuttal with your evidence and a specific number. How to dispute a total loss valuation.
4. If you still disagree on a claim under your own policy, consider the appraisal clause.
5. If the insurer does not follow the rules above, file a complaint with the state.

How long do you have to sue over a totaled car in Kansas?

Short answer: Generally 2 years to sue for damage to your car (K.S.A. 60-513(a)(2)). Your policy may set a shorter limit for suing your own insurer.

Property damage claims in Kansas generally must be filed within 2 years. Your policy may set a shorter deadline for suing your own insurer; check its "legal action against us" clause.

Source: K.S.A. 60-513(a)(2) (an action for taking, detaining or injuring personal property: 2 years)

How to file an insurance complaint in Kansas

Short answer: File a free complaint with the Kansas Insurance Department online. It asks the insurer for a written response, but it cannot set the amount you are owed.