What does total loss claim mean on a title

If you've been in an auto accident and your car is totaled (also called total loss), it means your car isn't repairable, or it costs more to repair than what it's worth.

What the insurer owes you for your totaled car

The insurer owes you the actual cash value of your totaled car. If you and the insurer can't agree on the method to come up with the retail market value, the insurer must follow the total loss rules outlined in state regulations (leg.wa.gov). These rules allow the insurer to choose one or more of the following methods to determine the value of your car:

• Offer to replace your car with an available and comparable car (leg.wa.gov) in your local area
• Offer you a cash settlement based on the actual cash value of comparable cars in your local area
• If you and your insurer cannot agree on the actual cash value of your totaled car, your insurance policy may have an appraisal provision in which you and the insurer agree to use independent appraisers or other methods to resolve the value dispute

If your insurer can't find comparable cars in the area where you normally park your car, it may expand the search in 25-mile increments until it finds two or more comparable cars. With your permission, your insurer may extend the search beyond 150 miles.

The insurer must add to the actual cash value any applicable taxes, license fees and other fees required to transfer ownership.

To find out if the amount the insurer offers you is a reasonable estimate of the actual cash value, ask the insurer for a “total loss valuation report.” This report shows the comparable auto data the insurer used to calculate your vehicle’s value. Insurers aren’t required to provide it without being asked, so be sure you request a copy.

When you and the insurer disagree on your car's value

You and your insurer

If you and your insurer can't agree on your car's value, you may have the right to hire an appraiser if your auto policy includes an appraisal provision. This provision typically allows you and the company to each hire appraisers.

You and the other person's insurer

If the other person's at fault and you can't agree with their insurer on the value of your car and have your own collision coverage, you can use it to file a claim with your own insurer. Your insurer will then pay you for the loss of your totaled car.

Your insurer is then free to pursue the at-fault driver for reimbursement, including any deductible you paid. If you don't have collision coverage, you have the right to seek legal advice.

What happens if you keep your totaled car

If you keep your car after the actual cash value, sales tax and applicable prorated taxes and fees are added together, the insurer deducts the salvage value from the total amount of the settlement. The insurer must report your totaled auto to the Washington state Department of Licensing (www.dol.wa.gov).

If you have questions about what happens next with your totaled car, contact the:

Washington state Department of Licensing (www.dol.wa.gov)
Title and Registration Services
Customer Service Unit
360-902-3770

What to expect after your car has been totaled

This short video from our insurance experts describes what happens after your car has been totaled.  

If you get into a car accident and the insurance company declares your vehicle a “total loss,” that means that your vehicle costs more to fix than to replace. Keep in mind that insurance companies not only consider the cost to repair the vehicle, they often:

• include costs like the cost to pay for a rental car while yours is being repaired; and
• deduct the amount they would receive for selling the vehicle as salvage.

You may be wondering what your next steps are, and what options you have to get back out on the road ASAP.

If you agree with the insurer:

If you agree with the insurance company’s assessment that your car is a total loss and what it’s worth, you will sign over the title and send it to the company. Typically, the company will then pay the lienholder first. If you owe less than the car is worth, you will get the difference.

*️⃣ If you plan on buying a used car, read our tips before you buy.

In some instances, you may have the option to keep your car — this is called owner retained salvage. With this option, the company deducts the amount they would get for selling the car as salvage from your claim payment.

The company is required to notify the state that your car is a total loss, and you kept the car. Texas law requires certain steps to be taken before the car is driven on the road again. Visit TxDMV’s website for more information.

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