According to the Oregon Insurance Division, the insurance regulator for OR, a total loss is declared when it would cost more to restore a vehicle to its original condition than to buy a similar replacement vehicle on the market. An insurance company may provide reimbursement for a vehicle that is a total loss by offering a comparable vehicle in your local area, or by paying a cash settlement based on your vehicle’s fair market value.
Your claim is closed once you accept the insurance payment or sign an insurance settlement form. There is an exception for first-party claims (claims you file with your insurance company). You can ask your insurance company to reopen your claim within 35 days of receiving payment if you cannot locate a comparable vehicle for the settlement amount. Your insurance company may either:
- Pay the difference between the market value of your vehicle and the cost of a comparable vehicle that you locate.
- Locate a comparable vehicle for you.
- Offer a replacement vehicle of the same make and year (or newer). It must be of similar body style, have similar options and mileage, and be in as good or better overall condition than the vehicle destroyed. You have the right to inspect the vehicle before accepting it.
- Initiate the appraisal clause in your policy.
The exception does not apply for third-party claims (claims you file with the other party’s insurance company) which your claim with the insurance company of the person who collided with you in the head on accident.
If you want to receive a replacement vehicle instead of a settlement amount you can ask the claims adjuster about this option. For more information on what an insurance company is required to offer you in your situation try contacting the consumer area of the Insurance Division of the OR government agencies.
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