Total Loss - The insurance company says your car has been totaled. Now what?

Many times, total loss settlements can be agreed upon without delay. At other times, the process can be extremely frustrating and time consuming. The information below may not eliminate these problems, but it will help you be better prepared and knowledgeable about the process.

What Does Total Loss Mean?
Total Loss occurs when your car is no longer financially or structurally reasonable to repair. The definitions for a destroyed or wrecked vehicle are found within the Department of Licensing Regulations: RCW 46.12.005 (2), RCW 46.80.010 (6), and WAC 308-56A-460. Here are some other definitions you need to know:

• Actual Cash Value:
  “Actual cash value” means the cost to you to replace your vehicle with a comparable vehicle.

• Comparable Vehicle:
  “Comparable vehicle” means a vehicle that is the same make and model, same or newer year, similar body style, similar options and mileage as your vehicle and in as good or better overall condition as established by current data. To achieve comparability, any deductions or additions for options, mileage or condition can only be made if they are itemized, appropriate, and substantiated in dollar amount. An insurer must consider information supplied by you when determining deductions or additions.

• Current Data:
  “Current data” means data no older than ninety days from the date of loss.

• Principally Garaged:
  “Principally garaged” means the zip code where the vehicle is normally kept.

• Settlement:
  “Settlement” means when the payment is actually made to you and/or your lien holder.

Your Rights as a Consumer
You have the right to receive payment for the Actual Cash Value of your vehicle, and to expect a good faith effort by the insurance company for a prompt and fair settlement. This includes taking your research into consideration rather than disregarding your information and saying the company has the final word. Neither you nor the company can base your vehicle’s Actual Cash Value upon vehicles of non-similar type and condition. Don’t be surprised if your “value amount” and the insurance company’s “value amount” do not match. Be prepared to negotiate with the company when this happens.

From: Washington Insurance Commissioner Fact Sheet