How a total loss determination happens at a body shop
A vehicle that arrives at a body shop for collision repair may be declared a total loss during the estimate and inspection process. See how adjusters coordinate total loss vehicle pickup. This happens when the insurance adjuster determines that the cost to repair the vehicle exceeds a defined threshold — typically 70-80% of the vehicle actual cash value depending on state regulations.\n\nThe adjuster reviews the body shop estimate, assesses the vehicle condition, and issues a total loss determination if the threshold is met. The body shop is notified that repair authorization will not be issued, and the insurer begins the total loss settlement process with the vehicle owner.\n\nThe body shop stops all repair work at this point. The vehicle sits on the shop lot generating daily storage fees until the insurer arranges pickup to a salvage facility.
What the vehicle owner needs to do after a total loss determination
The vehicle owner has several tasks to complete after a total loss determination — ideally before the vehicle is picked up from the shop.\n\nRetrieve personal belongings: Everything in the vehicle is the owner responsibility. Once the vehicle leaves the shop lot for the salvage facility, accessing personal property requires contacting the salvage yard — a process that is time-consuming and may involve additional fees. Remove everything before the vehicle leaves.\n\nRemove license plates: In most states, license plates belong to the owner rather than the vehicle. Remove them before pickup. Transfer them to a replacement vehicle or surrender them to the DMV.\n\nConfirm the settlement amount: Review the insurer settlement offer before accepting. See the full guide to what happens after a total loss declaration. The settlement should reflect the vehicle actual cash value before the accident. If you believe the offer is too low, request the valuation methodology and compare against comparable vehicles in your market.\n\nComplete title transfer: The insurer provides title transfer paperwork as part of the settlement. Signing the title transfers ownership to the insurer in exchange for the settlement check.
How storage fees are handled in a total loss at a body shop
Storage fees that accumulated while the vehicle was at the body shop during the inspection and total loss determination process are part of the overall claim and are typically paid by the insurer.\n\nHowever, storage fees that continue to accumulate after the total loss determination is communicated to the insurer — while the insurer is arranging pickup — are more frequently disputed. Insurers expect to arrange pickup within a reasonable time after total loss determination, and shops that accumulate additional storage during insurer coordination delays may face pushback on those charges.\n\nVehicle owners have an interest in the total loss pickup happening quickly even if they are not directly paying the storage fees — delays in pickup can occasionally complicate settlement timing. Ask your insurer when pickup is scheduled after the total loss determination is made.
What the body shop does during the total loss process
A body shop that handles total loss determinations regularly has established processes for managing the transition from repair to total loss efficiently.\n\nThe shop stops all labor immediately upon total loss notification and secures any parts that were removed during disassembly. Removed parts must be documented — some insurers require that parts be included with the vehicle at salvage pickup; others allow the shop to retain them.\n\nThe shop prepares a final storage invoice covering all days the vehicle was on the lot. This invoice goes to the insurer as part of the total loss claim documentation. Shops that document storage start dates accurately and maintain clear records of all contacts with the insurer have an easier time collecting on storage invoices. See how body shop storage fees work. that are scrutinized.\n\nOnce the insurer arranges pickup, the shop releases the vehicle to the salvage transport operator and receives a release receipt confirming the vehicle has left the property. This receipt closes out the storage obligation.