establish a minimum damage threshold for a motor vehicle total loss declaration.

SB 227 sets a 75% damage threshold for insurers to declare a motor vehicle a total loss. Insurers cannot classify a car as totaled unless repair costs meet or exceed 75% of its actual cash value (current market value based on make, model, mileage, and condition). Vehicle owners may still request a total loss declaration below this threshold with written consent. This bill directly affects auto insurance companies and vehicle owners in South Dakota by changing how insurers determine total loss claims.