My Rights After a Total Loss

What are your rights after an accident and your car has been declared a ‘total loss’? The Frequently Asked Questions on the Washington State Insurance Commissioners site has a good summary answer for this question:

13. They’ve declared my vehicle a total loss but won’t pay me enough to replace it. Is that legal? The company owes you the actual cash value of a comparable vehicle in your local area. You can determine this amount by using dealer quotes and/or newspaper ads or other auto sales publications, as long as the vehicle being sold is comparable to yours in mileage, condition, options, etc. In addition they will pay you sales tax on the value of your vehicle, and pay the unused portion of your registration fees. You may have the option of keeping your car (called - retaining the salvage). If you do, the company will subtract the value of the salvage from the final settlement, as you are keeping the damaged car.

An even better answer is found on the Insurance Commissioner’s web site which has a great brochure you can print called “Total Loss”. It summarizes the laws listed below in a ‘human-readable’ format rather than lawyer-ese.

Revised Code of Washington re Accidents and Insurance:

• 284-30-3901 - Definitions for settlement of vehicle claims.
• 284-30-3902 - When my vehicle is repairable, what can I expect from the insurer?
• 284-30-3903 - Can I get my vehicle repaired at a shop of my choice?
• 284-30-3904 - Will my insurer pursue collection of my deductible?
• 284-30-3905 - If my insurer collects my deductible back, will I recover the full amount of my deductible?
• 284-30-3906 - If another party is responsible for my vehicle damage, can that party’s insurer refuse to settle my vehicle damage and force me to use my own collision coverage?
• 284-30-3907 - How can my insurer settle my vehicle total loss claim?
• 284-30-3908 - Are there factors that may adjust my settlement?
• 284-30-3909 - If my vehicle is determined to be a total loss, can I keep it?
• 284-30-3910 - Can the insurer move my vehicle prior to settlement of the claim?
• 284-30-3911 - What information must be included in the insurer’s valuation report?
• 284-30-3912 - What if I, as an insured, accept the settlement based on my insurer’s valuation and cannot find a comparable vehicle within a reasonable distance of my vehicle’s principally garaged area?
• 284-30-3913 - What must the insurer do prior to the denial of storage and towing costs?
• 284-30-3914 - When I am dealing with someone else’s insurer, what are my rights regarding a rental vehicle?
• 284-30-3915 - What if the other person’s insurer offers a flat rental amount per day, week, or month?
• 284-30-3916 - In a total loss situation, what happens if I have a loan or lease on my vehicle and the outstanding balance exceeds the actual cash value of my vehicle?