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California has one of the most detailed total-loss regulations in the country: California Code of Regulations, title 10, section 2695.8. If you're in California, it gives you a concrete checklist to hold your insurer's valuation against. This is a summary; read the regulation itself [1] for the exact wording.
The insurer may offer a comparable replacement automobile, or a cash settlement based on the actual cost, in the local market area, of a comparable automobile, including applicable taxes and fees [1].
Same manufacturer, same model year (newer years only if there aren't enough same-year cars), same model type, similar body type, and similar options and mileage, available for retail purchase in the local market area within 90 days of the final offer. Comparables should be identified by VIN, stock number or plate, along with the seller's phone number or address [1]. Check each comparable in your report against that list.
The cost of a comparable must be fully itemized and explained in writing when the offer is made, and any adjustments must be discernible, measurable, itemized, specified and appropriate in dollar amount. Condition deductions are restricted: they're not allowed unless the documented condition of the loss vehicle is below average for its year, make and model [1]. If your report knocks off value for "condition," ask what documentation supports it.
The California Department of Insurance (CDI) summarizes that a total-loss settlement must include taxes, license and transfer fees, reflect the value of a comparable vehicle of like kind and quality, and that salvage deductions (if you keep the car) must be fair, measurable and discernible [2].
For first-party claims, the insurer must tell you when it sends payment or makes its final offer that if you notify it within 35 calendar days that you can't buy a comparable automobile for the gross settlement amount, it will reopen the claim. It must then locate a comparable car for that amount, pay the difference for (or buy) a comparable car you found, or invoke the policy's appraisal provision. This doesn't apply if the insurer already identified a specific comparable car that was available for the settlement amount at the time of the final offer [1]. Keep the listings you found.
CDI's overview of the Fair Claims Settlement Practices Regulations says insurers generally must respond to your communications within 15 days, accept or deny the claim within 40 days of proof of claim, and pay within 30 days of reaching settlement [2].
If you feel the company treated you unfairly, call the CDI consumer hotline at 1-800-927-4357 or file a Request for Assistance with copies of your policy, claim correspondence and valuation documents [2][3]. Your policy may also have an appraisal clause. For the general process, see How to dispute a total loss offer.
TotaledRight's free error check reads your insurer's valuation report and flags common problems. The full report ($49) adds local comparables, a value range and a ready-to-send letter. Run the free error check.
TotaledRight is not a law firm, appraiser or public adjuster. This guide summarizes public sources as of the review date; laws and regulations change. Check your own policy and your state insurance department.