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.
A new State Farm class action lawsuit says the insurance company wrongfully values total losses in vehicle accident claims.
Plaintiff Larry Relf says despite the fact that State Farm markets itself as an honest and reputable company, the insurance carrier regularly denies providing total losses to claimants after vehicle accidents.
The State Farm class action lawsuit specifically accuses the insurance company of colluding with another company, Mitchell International Inc., in order to receive Work Center Total Loss Vehicle Valuation Reports.
As alleged by the plaintiff in the State Farm class action lawsuit, Mitchell contracts to determine the settlement and market value of vehicles once any policyholder deductibles have been applied.
The State Farm class action says that the insurance company is involved in a scheme to artificially deflate vehicle loss claims to make payments to first-party insureds lower than the pre-loss value of the vehicle when the car is defined as a total loss.
The State Farm class action lawsuit accuses J.D. Power, Mitchell, and State Farm of violating their contractual obligations to consumers in additional to unlawful conduct violating Georgia law.
As explained in the State Farm class action lawsuit, the valuation methodology used assigns actual cash values for total loss vehicles in a manner that is much lower than other valuation models such as those included in Kelly Blue Book and NADA.
The process by Mitchell and accepted by State Farm for assigning cash values includes locating comparable vehicles, adjusting comparable vehicles, calculating the base vehicle value and loss vehicle adjustments, and calculating the market value.
The State Farm class action lawsuit accuses the companies of using old and inaccurate methodologies to determine the amount paid out to a claimant on a first party insured loss.
According to the State Farm car insurance class action, the methods for making adjustments on options, mileage, and equipment are invalid from a statistics standpoint.
The plaintiff also argues that all of these flawed methods of arriving at a claim value are not based on industry-accepted standards and causes the claimant to receive an underpayment on their total loss vehicle.
The defendants in the State Farm class action lawsuit, according to the plaintiff, have been able to make millions of dollars by consistently engaging in the process to undervalue accident claims.
The company is accused of using this WCTL valuation method for the vast majority of claims brought by first party insured policyholders in Georgia following an accident, leading to a regular pattern of denying policyholders fair value.
The proposed Class in the State Farm class action lawsuit are represented by R. Walker Garrett of Morgan & Morgan PA, Jonathan B. Cohen and John A. Yanchunis of Morgan & Morgan Complex Litigation Group, and Jonathan H. Waller of Waller Law Office PC.
The State Farm Total Loss Evaluation Class Action Lawsuit is Larry Relf v. State Farm Mutual Automobile Insurance Company, et al., Case No. 4:18-cv-00240-CDL, in the U.S. District Court for the Middle District of Georgia, Columbus Division.
Join a Free Total Loss Car Accident Class Action Lawsuit Investigation
If you were insured under an auto insurance policy, experienced a total loss car accident, and were not reimbursed for sales tax and other fees by your insurance company in the last 5 years, you may qualify to join a total loss car accident class action lawsuit investigation.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
242 thoughts onState Farm Class Action Argues Underpaid Total Loss Claims
ADD ME 2012 NISSAN MAXIMA STATE FARM TOTAL LOSS MY CAR BECAUSE THEY DIDNT WANT TO FIX DAMAGES. NOW I HAVE NO CAR
Pls add me
I was totalled by State Farm in May 2021
Yes add me I was involved on accident. The person who hit me had full coverage from State farm. They didn’t want to pay for my car being at the tow yard for months. The lady was very rude my car was totaled out. Add me
Add me,they went all way to Tennessee to get a vehicle to compare mine to to give me lowball figure
Add
Add me
Add me to
Add me too. They are trying to total my Lexus and Lexus came up with outrageous estimate- which SF mirrored. Had car moved at own expense to better shop which confirmed my suspicions and verified car not totaled.Resubmitted new estimate-way below first and involving no supplements. Been told by claims ( you never talk to same person) that adjuster just needs to sign off-but then person B says they never go with 2nd estimate- even though it’s to SF’s advantage to fix the car. I am unloading JERK from SF ASAP. What idiots
Add me to the list. My car was a total loss and I received under the valued amount. State Farms
Add me. A SF customer rammed me and my car was deemed a total loss. I chose another repair shop who was way cheaper. SF refused to pay me the value of my car even though the accident wasn’t my fault.
That’s what I’m going through right now with property part of the claim.