Are You Owed More In Your Total Loss Insurance Claim?

You may be owed more than you received in your total loss insurance claim after your car was totaled, including sales tax reimbursement, title fees, and other fees that you might incur when replacing your totaled vehicle.

When a car is totaled, many people are glad to have an insurance policy in place that can help them recuperate some of the financial losses they suffer. However, not all insurance companies may be paying all fees that they should when a policyholder files a total loss insurance claim.

Some policyholders may not know that their insurance companies may have to pay more than just the amount of the car in the case of a total loss claim. Insure.com notes that insurance companies are responsible for paying the actual cash value of a car or the market value of your car if you can replace it after a total loss crash.

Insure.com also notes that “insurers may be responsible for other costs associated with purchasing a new vehicle, such as sales tax, title and vehicle registration.” Thirty-four states reportedly require insurers to pay sales tax for the replacement vehicle after a total loss claim is made. Though the tax isn’t necessarily paid up front, policyholders should know for what benefits they may be eligible and what compensation they should receive. 

Insure.com also notes that in some cases, you can ask your insurance company to reimburse you for sales tax if they have not offered. You can do this especially if you live in a state that requires companies to reimburse you. You can even do this in a state in which insurance companies are not required to reimburse you for sales tax.

Even if your policy does not cover costs like sales tax in a total loss crash, you could still be entitled to it in some cases. For example, if your car was totaled in a crash that was the fault of another motorist, if their insurance policy pays sales tax in the case of a total loss crash, you may be able to receive it from the other motorist’s insurance.

Even in cases in which car insurance companies are required to cover costs in addition to just the cost of the car itself, some companies may not be paying customers all that they are due. Some policyholders may not know that they are due more money than they received in their total loss insurance claim.

The Balance offers tips to policyholders about how they can best advocate for themselves when making a total loss insurance claim. They recommend filing all of the completed paperwork as quickly as possible, to ensure you get your compensation in a timely manner. 

This is especially important because in some cases, there is a 30-day time limit on the making a request to be reimbursed for the sales tax of your vehicle. So, if you stall too long on filing your claim and preparing your paperwork, you may lose opportunities to maximize the money you receive in your total loss insurance claim.

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.

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