Car Insurance Company Seattle Washington

Reader’s Question:

If my car gets “totaled,” what are my options? By the way, I got my insurance in Seattle, Washington.

Cynthia

Seattle, WA

Hi, Cynthia! Basically, a car is “totaled” when it is so damaged that it would cost more to fix it than what it’s actually worth. Generally, over 50% damage will do it, although insurers differ on how much damage must occur before they consider a car totaled. And when that happens, you can either take the money and move on, or you can keep the car and have it repaired on your own.

Most insurance companies, including those in Seattle, WA, will offer you the vehicle’s actual cash value or ACV, minus the deductibles that you might have. Then they sell the totaled cars to salvage yards and the company takes those profits. But in the event that you disagree on the ACV that your insurer proposes, I suggest that you consult an independent appraiser (at your own expense, of course) or get an attorney for some legal advice.

If you choose to keep your car and have it repaired instead, there are a few things to keep in mind. Yes, you can still take the ACV, although some deductibles are still applied, plus the amount the insurance company would have gotten at the salvage yard. And not to mention, you have to get your car fixed yourself. Bear in mind that the money you’ll get from these insurance proceeds are usually not enough to fix your car, so you have to be sure and really think it through. Moreover, totaled cars usually need to go through a state inspection, and unfortunately, most insurance companies are sometimes hesitant to insure cars that have been totaled.

Whatever option you choose, Cynthia, make sure it’s an informed decision and don’t sign anything if you’re not certain of the terms!