How insurers set write-off thresholds, and where fleets can challenge them

The maths behind a write-off decision is straightforward, and it is worth knowing before a fleet tries to argue a vehicle back onto the road. Insurers increasingly lean on a simple ratio - estimated repair cost divided by actual cash value - to decide total loss, and the thresholds that trigger it vary widely by jurisdiction, per Inspektlabs.

The detail matters. In the US market Inspektlabs analysed, the most common threshold sits at 75% of ACV, with roughly fifteen states using that figure and others as low as 60% or as high as 100%; about half rely instead on a formula weighing repair cost plus salvage value against ACV. None of that is UK law, but AI-assisted assessment, which Inspektlabs says makes decisions faster and more consistent, is worth watching regardless of jurisdiction. The stakes for policyholders are real: Inspektlabs cites a J.D. Power 2025 US study that found satisfaction fell nine points among those hit with a total loss and only 58% said the valuation fully met their expectations; Inspektlabs adds that more than four in ten written-off policyholders do not accept the number they are given.

Why this matters: it pays to scrutinise ACV assumptions and repair estimates line by line before accepting a write-off, not after.