Understanding the Total Loss Threshold California rule is essential for vehicle owners dealing with insurance claims after an accident. In California, a car is considered a total loss if the cost of repairs plus salvage value equals or exceeds the actual cash value of the vehicle.

This protects policyholders from investing in repairs that surpass the car’s worth. Knowing the Total Loss Threshold California helps drivers navigate settlements, negotiate fairly with insurers, and make informed decisions about whether to repair or replace their vehicle.