Total loss laws in Utah

When is a car totaled in Utah?

Short answer: Utah sets a 100% total-loss threshold in its vehicle title law (Utah Code § 41-1a-1001(8)). It decides when the title is branded salvage.

A 'salvage vehicle' is one damaged to the extent that the cost of repairing it for safe operation exceeds its fair market value, or one an insurer (or another jurisdiction) has declared salvage.

Source: Utah Code § 41-1a-1001(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 Utah?

Short answer: Yes. Utah requires a cash settlement for a total loss on your own policy to include sales tax and transfer fees such as title and registration (Utah Admin. Code R590-190-11(1)(a)-(b), (2)(a), (10)(e)). The same rule covers a claim against the at-fault driver's insurer.

First-party: a replacement vehicle must come with all applicable taxes, license fees and transfer-of-ownership fees paid; a cash settlement must be based on the cost to buy a comparable vehicle including all applicable taxes, license fees and transfer of ownership fees (less deductible). The rule also says actual cash value 'shall include taxes and other fees' incurred in replacing the vehicle. Third-party total-loss settlements must also include all applicable taxes, license fees and transfer fees. No proof-of-purchase condition.

Source: Utah Admin. Code R590-190-11(1)(a)-(b), (2)(a), (10)(e)

Tax on a replacement car in Utah

4.85% state rate plus local and county option taxes. Dealer sales use the dealer location's combined rate; private sales use the buyer's address.

Source: https://tax.utah.gov/business/sales-tax/sales/rates/

See the sales tax and fee rule in every state.

How must the insurer value your car in Utah?

Cash value from: at least two comparables in the local market available within the last 90 days; else at least two in nearby areas including the closest major metro area; else at least two quotes from qualified local dealers; or a statistically valid source (primary weight to local values, at least 85% of makes/models for 15 model years). Deviations must be documented; deductions including salvage must be measurable, itemized in dollars and reasonable, and the basis fully explained. If a first-party claimant cannot buy a comparable vehicle at that value within 30 days of payment, the insurer must reopen and locate one, pay the difference, buy it for the insured, offer a replacement, or go to appraisal (unless it named a specific available comparable at settlement). Third-party total losses must follow the same cash-settlement methods except the 30-day reopening procedure. Other rules: no unreasonable travel; copy of insurer estimate to claimant; betterment itemized with written explanation on request; insurer must give the name and address of the salvage dealer behind a salvage deduction on request; loss-of-use paid until a reasonable total-loss offer is made; offering a first-party claimant substantially less than reasonable value as established by an independent source, or intentionally offering less than the claim is reasonably worth, is an unfair practice.

Source: Utah Admin. Code R590-190-11(1)-(2), (4), (6)-(7), (9); R590-190-12(6), (10); R590-190-9(6)

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 Utah?

Short answer: Under Utah rules, payment is due within 30 days after proof of the loss and its amount. A decision is due within 30 days after proof of loss. If payment is late: interest at the legal rate.

Acknowledge notice of loss within 15 days and give a substantive response to requests within 15 days; within 30 days after a complete proof of loss, finish the investigation and accept or deny a first-party claim (or explain why more time is needed, with updates every 45 days); pay first- and third-party claim amounts within 30 days after written proof of a covered loss and its amount, with interest at the legal rate on overdue amounts. If an unrepresented claimant is still negotiating, the insurer must give notice of the statute-of-limitations date at least 60 days before it expires.

Source: Utah Admin. Code R590-190-6(1),(3); R590-190-10(2)-(3); R590-190-9(20)-(21)

Compare claim deadlines in every state.

Can you negotiate a total loss offer in Utah?

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. Utah also lets you ask the insurer to reopen the claim within 30 days if you cannot buy a comparable car for the amount paid (Utah Admin. Code R590-190). The Utah Insurance Department takes complaints about claim handling.

Yes. Dispute in writing with local comparables. If you cannot buy a comparable car for the settlement amount within 30 days, notify the insurer, which must reopen the claim. Use the policy appraisal clause, or file with the Utah Insurance Department. Small claims court is available. The limitations period for motor-vehicle property damage is 4 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 Utah?

Short answer: Generally 4 years to sue for damage to your car (Utah Code § 78B-2-307(3)). Your policy may set a shorter limit for suing your own insurer.

Property damage claims in Utah generally must be filed within 4 years. Your policy may set a shorter deadline for suing your own insurer; check its "legal action against us" clause.

Source: Utah Code § 78B-2-307(3); § 78B-2-305(2)(b) (general 3-year personal-property period, but 4 years for damage to personal property from an accident involving a motor vehicle, including a motor vehicle and bicycle)

How to file an insurance complaint in Utah

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