Car totaled, extended warranty in settlement?

What is the name of your state? Washington

My car was recently totaled by another driver. It was his fault and he admitted to being at fault. The other driver's insurance has not made an offer yet for my car.

When I bought my car new 3 years ago y bought an extended warranty for $2500 which includes 3 years of service and bumper to bumper warranty for the fifth, sixth and seventh years of the car. I did not get to use this warranty at all. If I cancel it, I will only be reimbursed for about $1000 (this were the terms of the insurance). My intention was to keep the car until the eighth year.

So, my question is, should the insurance company reimburse me for the cost of the extended warranty? If I had sold the car, the warranty (and free service) would have been transferred to the new owner so I feel that the value of the extended warranty is part of the car's value.

Should I try to get at least part of the $2500 and also cancel the warranty? or would I be selling something to two people?

You should ask for the amount of money you're losing on the warranty, but you can't ask for it from both parties (the other insurance company plus the warranty company). Request a refund from the warranty company, then figure out how much money you lost on it by pro-rating the total minus the refund, and include that in what you ask for as a settlement offer. There's no guarantee they'll give it to you, but it doesn't hurt to ask. If the other insurance company doesn't grant it, then you can sue the other driver in small claims court for the difference.

What is going to happen you will not like. You will be compensated for the fair market value of the vehicle. Plus the extended warranty was an optional item. Based on the fact that the extended warranty added no value to the vehicle and the warranty was an optioon you selected, do not be surprised when they tell you they will not compensate you in anyway for the warranty. Take what the warranty company gives you and consider yourself lucky you got something back.