Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
State Farm Insurance Claims Class Action Lawsuit Overview:
- Who: Insurance provider State Farm has been hit with a class action lawsuit alleging it breaches its contracts with drivers.
- What: Driver Joan St. Julian says the company violates the law by not paying out sales tax to drivers when reimbursing them the “actual cash value” for cars that have been deemed a total loss.
- Where: The lawsuit is for California drivers.
Insurance provider State Farm “systematically and uniformly underpaid” claims made by thousands of consumers who suffered the total loss of their vehicle, a new class action lawsuit alleges.
The lawsuit was filed in California by lead plaintiff Joan St. Julian, who alleges that State Farm has breached contracts and violated California law by not paying out sales tax to drivers when reimbursing them the “actual cash value” for their total loss claims.
According to the lawsuit, State Farm processed approximately 115,000 total loss claims during the class period and around 10 percent of those claims were not paid sales tax owed under a given policy. “Assuming an average vehicle value of $15,000 and a sales tax rate of 8.5 percent, the amount-in-controversy easily exceeds $10,000,000, exclusive of interest, costs, and attorney’s fees,” Julian alleges.
State Farm Allegedly Underpays Total Loss Claims
Julian had a 2010 Bentley Continental GTC Speed Turbo 4WD 2D Convertible insured with State Farm and, in March, she was involved in an accident.
Julian filed a claim for property damage and State Farm determined that the cost to repair or replace the damage was higher than the vehicle’s actual cash value. As such, State Farm determined that the vehicle was what a “total loss” and invoked its actual cash value limit on liability.
“Plaintiff does not contest State Farm’s determination of the amount of loss, nor that such amount was higher than ACV and constituted a “total loss”. Plaintiff accepts that State Farm is permitted to only pay ACV,” the claim reads.
State Farm determined that the adjusted value of the vehicle was $72,219.00. It added title transfer fees of $15, subtracted the deductible of $500, but did not include any amount for sales tax, the claim states.
State Farm then made a total payment of $71,734.
The applicable sales tax based on Julian’s residency was 10.25 percent, therefore the ACV sales tax owed as part of the insured vehicle was $7,402.45, Julian claims.
“In breach of its contract with Plaintiff, State Farm did not include any sales tax in making the ACV payment for Plaintiff’s total loss,” the claim reads.
“Even if State Farm owes the cost to repair or replace the vehicle and not ACV, such cost would necessarily include sales tax, and thus State Farm nevertheless breached the Policy.”
Julian wants to represent all California drivers who were not reimbursed sales tax after their State Farm-insured vehicle suffered a total loss. She is suing for breach of contract and seeks certification of the Class, damages, legal fees, interest, and a jury trial.
Have you had to make State Farm claims for a total loss car? Tell us about your experience in the comments section.
Julian is represented by Scott Edelsberg of Edelsberg Law, PA.
The State Farm Claims Class Action Lawsuit is Julian v. State Farm Mutual Automobile Insurance Company, Case No. 4:21-cv-07404 in the U.S. District Court Northern District of California.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
12 thoughts onState Farm Systemically Underpays Total Loss Claims, Class Action Alleges
Vogt v. State Farm Life Insurance Co., No. 20-3481 (8th Cir. 2021) is this class action suit still active? I have the same problem with State Farm Insurance Company, I mean my whole family has this problem and we don’t know what to do. They ask us to take over these insurance policies with loans attached with out disclosing the terms of the polices. If this lawsuit is active and you give me the law firm who is handling the case?
Thank you for your time
Yes please help me out I had a total loss in 2017 or 2018 I believe and I know for 100% certain that I should be eligible for a couple of these possible class actions going against State Farm one for the sales tax not being calculated and the other for the valued amount settled on upon the payment of the payoff of my vehicle please let me know if there’s anything I can provide that will qualify me to present this case
Joshua Olmstead
Olmstead0606@gmail.com
my vehicle was stolen during the pandemic and the sheriff found it in another city it was reported as a total loss and estate farm had my claims stopped for a year and in the end they determined that they were not going to pay me because the theft was suspicious and they don’t pay me nothing
my vehicle was stolen during the pandemic and the sheriff found it in another city it was reported as a total loss and estate far had my claims stopped for a year and in the end they determined that they were not going to pay me because the theft was suspicious and no one found me help file a claim
I got no replacement. I’ve been paying on it for four years when it was totaled. All they did was pay it off. I got stuck with no transportation and lost my job. Can you help me please.
SINCE I WAS NOTIFIED OF THIS CLASS ACTION STATE FARM HAS JACKED MY LIABILITY FROM $41.00+ TO $71.00+ IM WONDERING IF THIS HAS HAPPENED TO ANYONE ELSE
Yup their doing it in Wisconsin 30% increase and arbitrary paying out total loss claims
My vehicle was vandalized on 11/27/21. It was reported and State Farm coordinated a rental at 80/20 for 15 days on 11/28. An adjuster didnt have time to go by collission center and inspect the damage and ok the repair costs. The Collission Center took pictures and submitted to State Farm on 11/29/21. The adjuster presented at the Collision Center on December 9th. Parts were ordered timely but I was stuck with the extra rental days which State Farm refuses to refund me. State Farm has determined they are not responsible for the extra rental days as my policy had a cap at 15 rental days and they scheduled an adjuster when one was available. Not happy with this outcome.. Will report to BBB, Insurance Commissioner and CEO of State Farm ( Michael Tipsord) once I secure his email address.
I had the same issue and the insurance adjuster never went out and took the shops word as fact instead of going to the location to make a
Proper call on the damages I had to call the bureau of automotive repair you might want to call them as well
I have a open claim with(Florida) State Farm and CCC since Oct 7 ,2021 which I have refused to settlement because their diminished value on a total loss is not fair.
Can i join a class action suit ?
I was involved in a total loss with state farm and was not paid out correcyly
Yup I’ve been waiting just short of the 30 day limit in Wisconsin to pay total loss claim Statefarm keeps telling me tied up in paperwork and checks coming