Total loss laws in Maryland

When is a car totaled in Maryland?

Short answer: Maryland uses 75% of the car's value as a salvage-title test (Md. Code, Transp. §§ 11-152, 13-506(c)). It does not stop the insurer from totaling a car below that.

For title purposes a vehicle is 'salvage' when the cost to repair it for highway operation exceeds 75% of its pre-damage fair market value (or an insurer acquires it in a claim settlement), excluding towing, storage, rental and cosmetic costs. The insurance regulation separately defines 'total loss' as repair cost (plus estimated hidden damage and anticipated rental) that equals or exceeds the actual cash value or a percentage of ACV set by the insurer, so the insurer may total a car below 75%.

Source: Md. Code, Transp. §§ 11-152, 13-506(c); COMAR 31.15.12.02B(9)

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 Maryland?

Short answer: Yes. Maryland requires a cash settlement for a total loss on your own policy to include sales tax and transfer fees such as title and registration (COMAR 31.15.12.01, 31.15.12.04A(2), B(2)). The same rule covers a claim against the at-fault driver's insurer.

For any private passenger vehicle total loss (collision, comprehensive, liability property damage or UM property damage claims), the insurer's minimum cash settlement offer must add the applicable taxes and transfer fees (determined under the MVA's rules at COMAR 11.11.05) to the vehicle's retail value or dealer quote, regardless of whether the claimant keeps the salvage. The rule is not conditioned on buying a replacement.

Source: COMAR 31.15.12.01, 31.15.12.04A(2), B(2)

Tax on a replacement car in Maryland

6.5% vehicle excise (titling) tax on most vehicles since July 1, 2025 (was 6%). Vehicles 7 or more model years old are taxed on the greater of price or $640, so the minimum tax is $41.60. No local add-on.

Source: https://mva.maryland.gov/title-registration/fees-payment-options/excise-tax

See the sales tax and fee rule in every state.

How must the insurer value your car in Maryland?

COMAR 31.15.12 (Valuation of Motor Vehicles, adopted under Ins. § 27-304.1) applies to first- and third-party total losses. The minimum cash offer, subject to applicable deductions, is either (A) the retail value of a 'substantially similar' vehicle from a nationally recognized valuation manual or a computerized database producing statistically valid fair market values, or (B) a quote from a qualified dealer at a location reasonably convenient to the claimant, in either case plus taxes and transfer fees. 'Substantially similar' means same make and model, same or newer year, at least the same major options, similar or better pre-loss condition, and mileage within the greater of 4,000 miles or 10% (mileage test waived for limited-production, specialty or over-10-model-year vehicles). The offer must state the amount and tell the claimant that on request the insurer will provide in writing: a copy of the offer, the valuation method and any books/manuals/databases used, a detailed calculation including options, a list of all deductions, and the inspection guidelines used to judge condition; the insurer must answer such a request within 7 business days. The claimant may reject in writing and counteroffer using dealer quotes, advertisements or any other valuation source; if the insurer rejects the counteroffer it must explain in writing, within 5 business days and in clear language, why the claimant's information is not a more accurate valuation. If the policy allows replacement, the replacement must be substantially similar, immediately available and paid for by the insurer less any deductible.

Source: COMAR 31.15.12.01-.07; Md. Code, Ins. §§ 27-303, 27-304, 27-304.1

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 Maryland?

Short answer: Maryland rules set no fixed payment deadline, but a decision is due within 15 working days after the insurer receives the claim forms or proof of loss. On a total loss, a cash offer is due within 10 business days after the insurer decides the car is a total loss.

Total loss: within 10 business days after determining a first-party total loss, the insurer must make a cash offer (or replace the car if the policy allows); for an unrecovered theft, the later of 30 days after notice or the policy period; for a third-party total loss, a cash offer within 10 days after the total-loss determination. These deadlines do not apply when there is a good-faith coverage dispute or factors beyond the insurer's control (including limited-production, specialty or over-10-model-year vehicles). General claims rules: acknowledge notice of claim within 15 working days (unless paid), reply to written communications within 15 working days, affirm or deny coverage within 15 working days after receiving completed claim forms or proof of loss; if a first-party investigation is not finished within 45 days of notice, notify the claimant in writing of the reason and repeat every 45 days.

Source: COMAR 31.15.12.03; COMAR 31.15.07.03B, 31.15.07.04B-C

Compare claim deadlines in every state.

Can you negotiate a total loss offer in Maryland?

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. The Maryland Insurance Administration takes complaints about claim handling.

Request in writing the valuation method, databases, detailed calculation, deduction list and inspection guidelines (insurer must respond within 7 business days, COMAR 31.15.12.05); reject the offer in writing and counteroffer with dealer quotes or ads for substantially similar vehicles, which obliges the insurer to explain any rejection in writing within 5 business days (COMAR 31.15.12.06); insist on taxes and transfer fees (COMAR 31.15.12.04); use the policy appraisal clause if present; file a complaint with the Maryland Insurance Administration. A first-party bad-faith claim under Ins. § 27-1001 must generally be filed with the MIA first (small claims within District Court small-claim jurisdiction are exempt). Sue the at-fault driver for third-party damage within 3 years.

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 Maryland?

Short answer: Generally 3 years to sue for damage to your car (Md. Code, Cts. & Jud. Proc. § 5-101). Your policy may set a shorter limit for suing your own insurer.

Property damage claims in Maryland generally must be filed within 3 years. Your policy may set a shorter deadline for suing your own insurer; check its "legal action against us" clause.

Source: Md. Code, Cts. & Jud. Proc. § 5-101

How to file an insurance complaint in Maryland

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