What ‘Totaled’ Means for Your Car
If you’ve been in an auto accident and your car is deemed a total loss, it signifies that the vehicle is beyond repair or the cost of restoration surpasses its market value. This guide breaks down the process, ensuring you understand both the terminology and your options.
What Your Insurer Owes You
Upon a total loss declaration, your insurer is obligated to provide you with the actual cash value (ACV) of your car. If you and the insurer find yourselves in disagreement over this valuation, the insurer must adhere to the total loss regulations established by your state. These regulations typically allow the insurer to use one or more of these methods to determine your car’s value:
- Offer a Replacement: Present you with a comparable vehicle available in your local market.
- Cash Settlement: Offer a cash settlement reflecting the actual cash value of similar vehicles in your area.
If you and your insurer cannot agree on your car’s value, your auto insurance policy likely includes an appraisal provision. This provision might allow both you and your insurer to engage independent appraisers or utilize other methods to settle the dispute.
Should your insurer be unable to locate suitable comparable vehicles within your immediate area, the search radius may be extended in 25-mile increments until two or more suitable matches are found. With your explicit consent, the insurer may extend the search beyond 150 miles.
The insurer is also required to add to the ACV any applicable taxes, licensing fees, and other associated fees required to transfer ownership of the vehicle.
To assess the fairness of the insurer’s offer, request a total loss valuation report. This report provides the comparable vehicle data the insurer used to calculate your vehicle’s value. Be aware that insurers aren’t obligated to provide this report unless specifically asked for, so be sure to request a copy when needed.
Disagreement on Value
If you and your insurer can’t agree on your car’s value, you may have the right to hire an appraiser.
If the other party is at fault and their insurer undervalues your car, and if you have your own collision coverage, you can file a claim with your insurer. Your insurer will pay you for the loss of your totaled car and can seek reimbursement from the at-fault driver, including your deductible.
If you don’t have collision coverage, you should seek legal advice.
Keeping Your Totaled Car
If choosing to keep your totaled car, the insurer will deduct the salvage value from your settlement total. Additionally, it is the insurer’s responsibility to report the vehicle as totaled to the Washington state Department of Licensing.
For further assistance with questions about your totaled car, consider contacting the Washington state Department of Licensing.
Need More Help?
Contact the Washington state Department of Licensing Title and Registration Services Customer Service Unit at 360-902-3770.
