Understanding the Totaled Car Process
When your car is declared totaled, it’s essential to understand what happens next and what your insurer owes you. Our insurance experts provide a clear overview of the process in a short video.
What the Insurer Owes You
The insurer is required to pay you the actual cash value of your totaled car. If you and the insurer can’t agree on the value, Washington state’s total loss rules come into effect. These rules allow the insurer to determine your car’s value in several ways:
- They may offer to replace your car with a comparable one in your local area.
- They may pay you the actual cash value of comparable cars in your area.
If your insurance policy includes an appraisal provision, you and the insurer can use independent appraisers to resolve any disagreements. The insurer must also add any taxes, license fees, and other fees required for transferring ownership to the actual cash value.
To ensure you’re getting a fair amount, you can request a ‘total loss valuation report’ from your insurer, which details the data used to determine your car’s value.
Disagreeing with Your Insurer’s Valuation
If you disagree with your insurer’s assessment of your car’s value, you have several options:
- Disagreements with Your Insurer: You may have the right to hire an appraiser to negotiate a better valuation.
- Disagreements with Another Person’s Insurer: If someone else is at fault, you can file a claim with your own insurer if you have collision coverage. They will then attempt to recover costs from the at-fault driver’s insurer.
Keeping Your Totaled Car
If you choose to keep your totaled car, the insurer will deduct the salvage value from the amount they owe you. The insurer is also required to report the totaled car to the Washington state Department of Licensing.
For further questions about the process, you can contact the Washington state Department of Licensing Title and Registration Services Customer Service Unit at 360-902-3770.
Related Topics
- Gap Insurance: This optional coverage pays the difference between what you owe on your vehicle and its actual cash value if it’s totaled.
- Calculating Taxes and Fees: If you decide to keep your totaled vehicle, understand how insurers calculate taxes and fees associated with the process.
