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)
- Filing fee
How are pro-rated taxes and fees calculated?
Taxes and fees are calculated on a pro-rata basis so 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 9.8%): $1,506.75
Total: $16,881.75
Example of annual government taxes and fees subject to pro-rating based on the unused portion of the license tab
Type of fee | Fee |
|---|---|
RTA (www.dol.wa.gov) (King, Snohomish and Pierce counties only) must be calculated individually | $20.00 |
Licensed fee | $30.00 |
Weight-based fee (varies by vehicle weight) | $10.00 |
Other regional fees (if any) | $0.00 |
Filing fee | $3.00 |
Subtotal for fees | $63.00 |
Actual cash value plus sales tax | $16,881.75 |
Total settlement value | $16,944.75 |
Example of how the salvage value is handled when you decide to keep your totaled car
Payment breakdown | Costs |
|---|---|
Total settlement value before deductions, if any | $16,944.75 |
Deductible, if any (collision deductibles) | $-500.00 |
Total payment | $16,444.75 |
Salvage value | $-275.00 |
Total payment, if owner keeps car | $16,169.75 |