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State sales tax on total loss vehicle

by Bill
(Houston, TX)

Is the insurance company required to pay the 6.25% state sales tax as part of the claim?

If so, were is it in the law or case law ruling (please give specific law suit).
Also, if the insured wants to keep the salvage, is he entitled to sale tax on the difference between the ACV and Salvage value.



Yes, when you had your vehicle, you had already paid all taxes (sales taxes) for that car. Therefore this is a new expense.

You are not likely to be entitled to the difference in tax as the total loss settlement is supposed to compensate for that value already.

As far as case law, we charge $150 per case search in Texas.

Let us know if you are interested.

Good Luck,
Auto Insurance Claim Advice

Comments for State sales tax on total loss vehicle

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Aug 16, 2011
City sales tax?
by: Spencer

The insurance company has made me an offer on my totaled car which includes state sales tax at 6.25%. I live in Dallas County where the sales tax is 8.25%. In fact I would have to travel quite a ways to get out of the 8.25% rate. Can I get them to pay the 8.25% rate?


They must put you back in the position you were. This would include a 8.25% if you live in that county. It would be unreasonable to have you move out of the county to get another vehicle.

Good Luck

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