What methods can the insurance company use to settle my vehicle total loss claim?

The insurance company can adjust and settle your vehicle total loss by one of the following methods:

1. By offering to replace your vehicle with a comparable vehicle that is available for inspection within a reasonable distance from where your vehicle is principally garaged.
2. By offering a cash settlement based on the actual cash value to purchase a comparable vehicle. Only vehicles identified as comparable may be used to arrive at the actual cash value. The offer of a cash settlement must use one of the following methods:
   1. The actual cash value of a comparable vehicle based on current data obtained from the principally garaged area. If a comparable vehicle cannot be found within the principally garaged area, the search area may be expanded only in increasing circles of twenty-five mile increments until a comparable vehicle is identified.
   2. Quotations for the actual cash value of a comparable vehicle obtained from two or more licensed dealers located within the principally garaged area. If two or more licensed dealers cannot be found within the principally garaged area, the search area may be expanded only in increasing circles of twenty-five mile increments until two or more quotes for comparable vehicles are obtained.
   3. The actual cash value of two or more comparable vehicles advertised for sale in the local media if the advertisements are no older than ninety days. The vehicles must be located within the principally garaged area. If two or more comparable vehicles cannot be located within the principally garaged area, the search area may be expanded only in increasing circles of twenty-five mile increments until two or more comparable vehicles are identified.
   4. Any source for determining statistically valid actual cash values within your vehicle’s principally garaged area that meets the following criteria:
      • Primary consideration must be given to the values of vehicles in the zip code where your vehicle was principally garaged.
      • The data base must produce values for at least eighty-five percent of all makes and models for a minimum of fifteen years taking into account the values of all major options for such vehicles.
      • Actual cash values must be based on current data available from the principally garaged area. If comparable vehicles cannot be found within the principally garaged area, the search area may be expanded until comparable vehicles are identified to assure statistical validity.
      • The source must rely upon the actual cash value of comparable vehicles that are currently available or were available in the market place within ninety days from the date of loss.
      • The source must provide a list of the comparable vehicles used to determine the actual cash value. If more than thirty comparable vehicles are used, only thirty must be listed.
3. When you and the insurance company both agree, an evaluation that varies from the methods described above may be used.

Applicable taxes, license fees, and other fees incidental to transfer of evidence of ownership must be added to the actual cash value.

From: Washington Insurance Commissioner Fact Sheet