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Illinois total-loss rules

12 of 12 confirmed against primary sources

Last checked Sep 4, 2026 · ClaimMath research desk

Every fact below is quoted from the regulation or statute it cites. Where the primary sources do not settle a point, it is marked and left open rather than filled in — which is itself worth knowing before you argue it.

When a car counts as a total loss

insurer discretion / none — no statutory repair-cost percentage governs insurers; the title code treats any vehicle on which an insurer pays a 'total loss claim' as salvage. The 70% test in 3-117.1(b)(1.1) applies only to self-insurers; 50% tests in (b)(3)-(4) apply to repossessed and fleet vehicles.
“When an insurance company makes a payment of damages on a total loss claim for a vehicle, the insurance company shall be deemed to be the owner of such vehicle and the vehicle shall be considered to be salvage”

Owner may retain the vehicle by agreement if damage is hail-only or the vehicle is 9 model years of age or older. 'Total loss' is not defined in 3-117.1; the policy's own language controls when repair is uneconomical.

625 ILCS 5/3-117.1(b)(1) · checked Sep 4, 2026 · source

How the settlement must be valued

Insurer may replace the vehicle or pay cash. Cash settlement must be based on retail 'market value' from one of: (A) a published guidebook (updated at least every 2 months, last 5 model years); (B) a computerized database (>=85% of makes/models, last 15 model years, data from the area where the vehicle was principally garaged, mileage/condition allowances); (C) a computerized service listing >=2 comparable vehicles available or sold by licensed Illinois dealers; or (D) if not quoted in any source, >=2 written dealer quotations. Insurer chooses the method.
“The company may elect to pay a cash settlement. The company shall use one of the following methodologies to determine the market value of the insured vehicle: The cash settlement may be based upon the retail value of the vehicle”

Also retrieved at https://www.law.cornell.edu/regulations/illinois/Ill-Admin-Code-tit-50-SS-919.80 (identical text). Replacement option requires same manufacturer, same year, similar body style/options/price range, available at a licensed dealer within reasonable distance (919.80(c)(1)(A)).

50 Ill. Adm. Code 919.80(c)(2)(A)-(D) · checked Sep 4, 2026 · source

How comparables must be chosen

Computerized-service comps: at least 2 vehicles currently available from, or sold by, licensed Illinois dealers (one sold within 30 days, one within 90 days), dealer located within 50 miles of the general metropolitan area; dealer names, locations and VINs kept in claim file. Database values must use data from the area where the vehicle was principally garaged with mileage/condition allowances. Betterment/condition deductions allowed only if measurable, itemized, specified in dollars and documented; wear-and-tear/rust/missing-parts deductions capped at $500; 'dealer prep' deductions prohibited.
“The location of the licensed dealer for each available or recently sold vehicle shall be within 50 miles of the general metropolitan area where the data is gathered.”

Betterment text (919.80(d)(4)): deductions must 'Reflect a measurable decrease in market value attributable to the poorer condition of, or prior damage to, the insured vehicle' and be 'measurable, itemized, specified as to dollar amount and documented in the claim file'.

50 Ill. Adm. Code 919.80(c)(2)(C); 919.80(d)(4)(A); 919.80(c)(3)(B) · checked Sep 4, 2026 · source

What the insurer must show you

Partial duty. Insured must receive the Exhibit A rights notice within 7 days of the total-loss determination. When the dealer-quotation method is used, insurer must furnish dealer names/locations and copies of the quotes. Computerized sources must provide valuation records 'upon request'. Otherwise the regulation requires documentation of how market value was determined to be kept in the claim file; no general deadline to hand the valuation report to the insured. Right of Recourse: if insured cannot buy a comparable vehicle for the settlement amount within 30 days, insurer must reopen the file and locate a vehicle, pay the difference, offer replacement, or go to appraisal.
“The company shall furnish the names and locations of the dealers used to determine the market value to the insured, and a copy of the dealers' quotations.”

Exhibit A itself (the Total Loss / Rights of Recourse notice) was not retrieved — ILGA Recourse text: 'If within 30 days after the receipt of the claim draft, the insured cannot purchase a comparable vehicle in excess of such market value, the company will reopen its claim file'.

50 Ill. Adm. Code 919.80(c) (intro); 919.80(c)(2)(D)-(F) · checked Sep 4, 2026 · source

Sales tax

yes-upon-replacement — if insured purchases or leases a vehicle within 30 days of receiving the settlement, insurer reimburses applicable sales tax (capped at tax on the total-loss vehicle's value; documentation due within 33 days); insurer may instead pay tax directly at settlement. Paid outright when a replacement vehicle is provided.
“if within 30 days after the receipt of the settlement by the insured, the insured has purchased or leased a vehicle, the company is required to reimburse the insured for the applicable sales taxes and transfer and title fees”

Any reimbursement form the insurer requires must be furnished with the notice or at settlement (919.80(c)(3)(A)(ii)). Leased vehicles: tax deemed incurred when lease is entered if included in lease cost or paid directly.

50 Ill. Adm. Code 919.80(c)(3)(A)(i) · checked Sep 4, 2026 · source

Title and registration fees

yes — transfer and title fees are reimbursed on the same 30-day purchase / 33-day documentation terms as sales tax for cash settlements, and paid outright when a replacement vehicle is provided.
“If a replacement vehicle is provided, the company is required to pay the applicable sales tax and transfer and title fees.”

Registration fees per se are not named; the regulation says 'transfer and title fees'.

50 Ill. Adm. Code 919.80(c)(3)(A) · checked Sep 4, 2026 · source

Appraisal clause

Policy-based; no Illinois statute mandates an appraisal provision or sets appraiser-naming timelines. The regulation recognizes settlement 'under the appraisal section of the insurance contract' as one of the insurer's Right-of-Recourse options and deems the result binding on both parties.
“The company may conclude the loss settlement as provided for under the appraisal section of the insurance contract in force at the time of loss. This appraisal shall be considered as binding against both parties”

Illinois does not license auto damage appraisers; the word 'appraisal' carries no licensing implication here (contrast Pennsylvania).

50 Ill. Adm. Code 919.80(c)(2)(F)(iv) · checked Sep 4, 2026 · source

Claim-handling deadlines

Acknowledge/respond to pertinent communications within 15 working days ('reasonable promptness', 919.40). Affirm or deny liability within a reasonable time; offer payment within 30 days after affirming liability if amount undisputed (919.50(a)). Written explanation of a lower offer or denial within 30 days after investigation completed (919.50(a)(1)). First-party physical damage claim unresolved more than 40 calendar days from report: written delay explanation plus Notice of Availability of the Department of Insurance (919.80(b)(2)). Exhibit A total-loss notice within 7 days of total-loss determination (919.80(c)).
“affirm or deny liability on claims within a reasonable time and shall offer payment within 30 days after affirmation of liability, if the amount of the claim is determined and not in dispute.”

919.40: 'Reasonable Promptness means a maximum of 15 working days from receipt of communication from a claimant or insured.' 919.80(b)(2) carries the total-loss specifics. 919.30 concerns file examination, not deadlines.

50 Ill. Adm. Code 919.40; 919.50(a), (a)(1); 919.80(b)(2); 919.80(c) · checked Sep 4, 2026 · source

Unfair claims practices law

215 ILCS 5/154.6 (Acts constituting improper claims practice), enforced by IDOI under 215 ILCS 5/154.5-154.8 and implemented by 50 Ill. Adm. Code Part 919. Key items: (b) failing to acknowledge with reasonable promptness; (c) failing to adopt reasonable standards for prompt investigation/settlement; (d) not attempting in good faith to effectuate prompt, fair and equitable settlement; (h) refusing to pay without reasonable investigation; (n) failing to promptly provide a reasonable explanation of denial or compromise offer.
“Not attempting in good faith to effectuate prompt, fair and equitable settlement of claims submitted in which liability has become reasonably clear;”

154.6 creates no private right of action; 215 ILCS 5/155 (attorney fees/penalty for vexatious and unreasonable delay) is the usual private remedy — not retrieved.

215 ILCS 5/154.6(d) · checked Sep 4, 2026 · source

Time limit to sue your own insurer

10 years
“actions on bonds, promissory notes, bills of exchange, written leases, written contracts, or other evidences of indebtedness in writing ... shall be commenced within 10 years next after the cause of action accrued”

Years, written-contract limitation. Policy suit-limitation clauses may shorten this; Illinois 215 ILCS 5/143.1 tolls a policy limitation period while the claim is pending — 143.1 not retrieved.

735 ILCS 5/13-206 · checked Sep 4, 2026 · source

Where to file a complaint

https://idoi.illinois.gov/consumers/file-a-complaint.html
“How to File a Complaint”

Page directs consumers to the IDOI Help Center online portal or paper forms by email/mail.

IDOI 'How to File a Complaint' · checked Sep 4, 2026 · source

State regulator

Illinois Department of Insurance
“Illinois Department of Insurance”

idoi.illinois.gov · checked Sep 4, 2026 · source

Open questions on this row (2)

These are the things we could not settle from primary sources. They are published rather than hidden, because a reader arguing this rule should know where it thins out.

  • 215 ILCS 5/155 (vexatious delay remedy) and 215 ILCS 5/143.1 (tolling of policy suit-limitation clauses) not retrieved; cite as unverified until confirmed.
  • Check whether the 919.80(c)(2)(C) '50 miles' and '30/90 day' comp requirements were altered by any 2024-2026 JCAR amendment (page retrieved shows current text, no effective date captured).

Guides that apply in Illinois

Ordered by how firm Illinois’s footing is on each subject.

States that handle this the same way

These also owe sales tax once you actually replace the car.

Florida, Ohio

All states, side by side

What your insurer says

Illinois’s rules bind every insurer equally. What each one publishes about its own method is quoted from its claims pages.

GEICO, State Farm, Progressive, Allstate, USAA, Liberty Mutual