Sales Tax, Registration, and Fees in a Total-Loss Settlement
Many states require insurers to reimburse sales tax, registration, and title fees on total-loss settlements. Know your state's rules.
Published April 28, 2026
Bottom line
Most states require insurers to include sales tax (or sales-tax credit), registration, and title fees in your total-loss settlement. Some require it only on first-party claims; some on both. Always ask — these add up to several hundred dollars on most vehicles.
What's typically reimbursable
Sales tax on the replacement vehicle. Registration fees. Title fees. Sometimes documentation fees.
First-party vs. third-party
First-party policies typically cover these. Third-party rules vary by state — and at-fault carriers often try to skip the reimbursement.
Frequently asked questions
What if the insurer says they don't pay sales tax?▼
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