The office of the Insurance Commissioner for Washington State only defines a total loss of a motor vehicle as when a car is not repairable, or when it costs more to repair than what it is worth. Since the state has not set forth specific guidelines then the insurance company normally has the right to determine if a car is a total loss or not using their internal guidelines.

Without a specific state law as a guideline most insurance companies will determine a vehicle to be a total loss when it is between 51 to 80 percent of its actual worth or basically when the repairs costs are more than the value of the vehicle.

When deciding if a car is going to be declared totaled or not the actual cash value (ACV) should be determined. The WA insurance regulator notes that actual cash value means your cost to replace your car with a like car. This includes the retail price, plus all applicable taxes and fees.

According to the Office of the WA Insurance Commissioner “Like Car” means a car that is the:

• same make and model;
• same or newer year;
• similar body style, options, and mileage as your car; and
• in as good or better overall condition.

To achieve “likeness,” the WA Insurance Commissioner states that you or the company must itemize and confirm in a dollar amount any deductions or additions for options, mileage or condition. An insurer must consider information that you supply when it determines deductions or additions. However, shared information may not always produce a change in the value.

The insurer can adjust and settle your claim using one or a combination of the following methods:

1. Offer to replace your car with a like car that is available for your inspection within a reasonable distance from where you garage your car.

2. Offer you a cash settlement based on the actual cash value to purchase a like car. To arrive at a cash settlement offer, the insurer may use one or more of the following:

• find and offer you a like car in your area;
• obtain a quote for a like car from two or more licensed dealers in your area;
• find two or more like cars advertised for sale in the local media within the last 90 days; or
• use an independent company to determine the value of a like car in your area.

3. If you and the insurer both agree, the insurer may use other appraisal methods, such as using independent auto guides.

Washington law also provides that 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 your car has sustained enough damage for the insurance company involved to declare it a total loss you will need to speak to the claims adjuster assigned to your claim.