After your car is wrecked in an accident, it might cost more than the actual cash value of your vehicle, or it may not be repaired. If this situation takes place, the insurance provider will declare that it’s not worth repairing your car, which is called a total loss.
The threshold refers to a defined percentage of repair expenses that, when reached or exceeded, requires the car to be classified as a total loss. The state law sets this percentage, and it will vary accordingly.
The Washington total loss threshold law says that a car is a total loss after its repair cost, which includes labor, plus the salvage value (the value of a vehicle after its accident), reaches or exceeds its actual cash value before the accident.
When an insurer declares a car a total loss in Washington, it offers the actual cash value of the vehicle before its accident. It’s not the same amount you paid for the car, because your car goes through depreciation over time. The process of settlement is also known as ACV settlement, and it's less than the replacement value.
If your car was worth $13,500 before its accident. After the accident, the estimated repair cost is $9,000, and the salvage value of your vehicle is $4,500. The total of your car’s repair cost and salvage value is 13,500, the total market value for the vehicle before its accident. So, it’s a total loss.
You might not know how to file a total loss threshold claim in Washington, and it's completely ok. Because the process is quite complex. We break down the whole process of filing a claim in the following points:
To file the claim, you need to contact the insurance company and let them know about your accident. After inspecting your car, they will disclose whether the vehicle is a total loss or not. Specific threshold percentages may vary depending on insurance policy, vehicle’s age, and condition.
After your car is declared a total loss, you need to contact the Washington Department of Licensing and surrender your car’s ownership. The car owner is obligated to surrender the title of their vehicle within 15 days of its accident.
Next, you need to prepare for your car’s salvage. You need to remove your personal items and license plates from the vehicle, collect all its documents and keys, and remove the information from the navigation or phone systems.
If you plan to surrender the title to the insurance company, you may need to permit them to work with your finance or leasing company. After this, you should also complete all documentation, including title transfers.
At last, ensure your insurance policy is updated and reflects the total loss or other relevant changes in the coverage.
After your car is declared a total loss in Washington you have 3 options:
If you accept the payout after a Washington total loss threshold claim, you receive a check for the vehicle cash value, and it is the most straightforward and common route.
Generally, the insurance company takes ownership of the totaled vehicle; however, you can also keep it. The insurer will deduct the car’s salvage value from your payout and title your car as a “salvaged vehicle” if you decide to keep it.
In this case, you will need to get your car repaired and undergo a test to get your vehicle road-ready again and receive the title of previously salvaged. If you get your car repaired but drive it without a test, you may face heavy fines and legal action.
In case you are offered a lower settlement amount, you can challenge their decision for a higher actual cash value for the vehicle. For this, you can hire a lawyer experienced in car insurance cases or get your car appraised. The documents will help you get a higher market value for the vehicle.
The insurance company will most likely offer a low settlement amount for the total loss claim. So, how do you get a fair settlement amount for your vehicle? The following 3 points can help you with that.
First of all, you need to learn about your car’s market value. There is no specific total loss calculator in Washington, so this won’t be easy, but you should try. Present all your car-related documents and negotiate for a higher settlement offer.
You should hire a lawyer experienced in car insurance cases if required. This will lengthen the settlement process, but you will likely receive a better payout.
Hiring an appraiser for a Washington total loss threshold claim is the third and final solution. Hire an expert appraiser who will provide you with a detailed appraisal report of your vehicle. You can present this appraisal report to the insurers and negotiate for a higher settlement amount.
ADR Claims is a trusted appraiser team that inspects your car and provides you with an accurate appraisal report. If your insurer didn’t offer a fair amount for your vehicle, call us. We will help you recover the losses and make the process much easier.
Our quick and simple appraisal process can help you recoup vehicle-related losses.
