Car Insurance Total Loss Coverage Should Extend to Taxes and Fees, Says Policyholder

Grange Indemnity Insurance Company is facing a new class action lawsuit which alleges it denied numerous policyholders total loss insurance coverage for their vehicles.

The class action lawsuit was recently filed by a woman from Ohio, claiming Grange Indemnity failed in its duty to compensate for actual cash value for her vehicle when it was in the company’s standardized automobile insurance policy.

Plaintiff Vicki O. claims that she and other Ohio residents had suffered car insurance total loss damages that should have been compensated by Grange Indemnity, but that the insurance company allegedly failed to do this.

According to the claim, Grange Indemnity issued Vicki and proposed Class Members insurance policies for private passenger automobile physical damages, which included comprehensive and collision coverage that required payment of actual cash value in case of a total loss.

Car insurance total loss kicks in when the costs of repairing the vehicle exceed what the car is worth, or the actual cash value. Different valuation methods apply; in some cases, the actual cash value of a car is determined by its pre-market value depreciation from when it first entered the market, which can be very different from the number on Kelley Blue Book or Edmunds.

While all insurance companies have different ways of evaluating actual cash value, actual cash value is typically determined by the car’s condition, age, and other factors the insurance company may deem important.

It is important to note that to get actual cash value, the insured part will most likely have to put in more effort in documentation and other steps, but will generally have the easiest time if they go through their own insurance company.

According to The Balance, vehicle owners who are trying to claim car insurance total loss are generally advised to do the following to maximize their chances:

• Report the claim to insurance company as soon as possible
• Have vehicle towed to insurance company’s preferred shop
• Locate title of car
• Determine if a loan is still out on vehicle and how much is owed
• Do research to determine value of vehicle
• Send completed paperwork as soon as possible

Overview of Class Action Total Vehicle Loss Lawsuit

Even though Vicki says she followed proper procedure, she claims Grange Indemnity failed to provide her with the full actual cash value of her car. According to the car insurance class action lawsuit, Vicki was involved in a vehicle collision on May 6, 2018 that left her 2001 Grand Prix unable to function.

Soon after the accident, Vicki filed a claim in which Grange Indemnity reportedly found that the total loss of the vehicle’s base value was $1,773 and applied a $100 deductible. This resulted in the settlement amount of $1,673, which did not include any amount for sales tax and Vehicle Title and Registration Fees.

Each of these expenses were supposed to be included in the actual cash value payment of the car, which included sales tax in the amount of six percent of the base vehicle value. The lawsuit points out that Vicki’s insurance policy states that Grange Indemnity “will pay for sudden, direct, and accidental losses to your covered auto or any non-owed auto.”

In the same section, under the policy’s “Limit of Liability” provision, and that what constitutes as expenses related to actual cash value is not actually defined. This means that the company is liable to pay any expenses including sales tax, vehicle title and registration fees when calculating actual cash value.

This Auto Insurance Lawsuit is Case No. 2:19-cv-01147-ALM-KAJ, in the U.S. District Court of Southern Ohio, Eastern 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.

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