What taxes and fees are pro-rated in a total loss settlement?

Regional Transit Authority (RTA) tax (www.dol.wa.gov), license fee, weight-based fee, other regional fees (if any) and the filing fee.

How are pro-rated taxes and fees calculated?

Taxes and fees are calculated on a pro-rata basis so that the vehicle owner is compensated for the “unused” portion of the annual taxes and fees.

Example: A car’s annual renewal occurred in March. The car is totaled in June. (This means three months of the annual taxes and fees have been used.)

The annual RTA tax is $120 per year. The insurance company owes nine months or 9/12th of the RTA tax.

$120/12 months = $10/month

$10 X 9 months = $90 (the pro-rated fee)

How is salvage value handled when you decide to keep your totaled car?

After the actual cash value, sales tax and applicable pro-rated taxes and fees are added together, the insurance company deducts the salvage value from the total amount.

Example:

Actual cash value	$15,375
Sales-tax rate (Seattle 9.5%)	$1,460.63

 

The following annual government taxes and fees are subject to pro-rating based on the unused portion of the license tab
RTA (www.dol.wa.gov) (King, Snohomish and Pierce counties only) must be calculated individually	$20	Pro-rated example
License fee	$30	Pro-rated example
Weight-based fee (varies by vehicle weight)	$10	Pro-rated example
Other regional fees (if any)	$0	Pro-rated example
Filing fee	$3	Pro-rated example

Total settlement value before deductions, if any	$16,898.63
Deductible, if any (collision deductible)	$-500
Total payment	$16,398.63
Salvage value Total payment, if owner keeps car	$-275 $16,123.63