Policyholders May Be Shortchanged in Total Loss Car Claims

If you had a vehicle totaled when your car was under auto insurance, but you only received value for the car itself, and not for sales tax and other fees, you may have a legal claim.

Customers have reported that their insurance companies are not compensating them sufficiently in the case of their total loss car claims. Losing a car can be a big economic hit. The car itself can be costly to replace, but that’s not the only cost people face after a car accident.

After a total loss car accident, owners may have to pay costs like the car’s sales tax, title transfer fees, and other costs. The car’s value is usually assessed as the fair market value of the car on the day of the accident.

After an accident occurs, an insurance adjuster assesses the damage done to a car so they can make a determination of how much the insurance company should reimburse the policyholder.

Car insurance policies should cover the cost of all of the fees and expenses associated with a total loss car accident. However, some companies may just be covering the cost of the car itself after a total loss car accident, in an effort to pay out less money in a claim.

Many customers may be entitled to more than the cost of their car itself when they file a total loss car claim. If you have filed a total loss car claim and only received the cost of the car itself, you may be entitled to more. Experienced lawyers can help you determine if you may have a valid claim against your insurance company.

Total Loss Car Insurance Claims Class Action Lawsuit

A number of car insurance companies may be insufficiently compensating their policyholders in the case of total loss car accident claims. State Farm is one insurance company that has been accused of short-changing total loss claimants.

Another such company is GEICO. Several policy holders have already filed lawsuits against GEICO for their alleged practice of insufficiently compensating their policy holders for total loss car claims. The policy holders said that these fees “are components of ‘actual cash value’ under the policy,” and therefore the insurance company should cover those losses. To support this claim, GEICO policyholders claimed that the fees such as sales tax and title fees are required when a customer purchases or leases a replacement vehicle.

One GEICO policyholder filed a total loss car class action lawsuit in Florida against the company after she was forced to pay $75.25 to transfer her title, in addition to the six percent sales tax on the replacement car. In total, she says she was forced to pay around $1,500 that was not paid by her GEICO insurance claim, though she claimed that this amount should have been covered.

GEICO may not be the only company failing to cover policy holders’ fees and other costs when they file a total loss car insurance claim, meaning that many people may be affected by this problem.

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, you may qualify to join a total loss car accident class action lawsuit investigation.

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