American Family Insurance total loss $2.2M class action settlement

American Family Insurance Co. agreed to a settlement worth more than $2.2 million to resolve a class action lawsuit claiming it violated Washington law by underpaying total loss claims.

The settlement benefits individuals insured under a Washington American Family policy who were paid because a vehicle they owned (not leased, rented or borrowed) was declared a total loss and who received a total-loss valuation based on an “Autosource” estimate that took a “typical negotiation” discount.

Plaintiffs in the total loss class action lawsuit accused American Family Insurance of violating Washington law by taking deductions for “typical negotiation” and “condition” when paying total loss claims. As a result of these practices, policyholders were allegedly underpaid.

American Family Insurance offers a range of insurance products including car insurance, renters insurance, home insurance, life insurance and more.

American Family hasn’t admitted any wrongdoing but agreed to pay $2,238,335 to resolve these allegations.

Under the terms of the American Family total loss settlement, class members can receive a cash payment based on the amount that was deducted from their total loss payment for “typical negotiation” discounts. 

According to the settlement website, each claimant is anticipated to receive around 65% of the deductions taken from their total loss payments.

The deadline for exclusion is Feb. 6, 2023. The deadline for objection is Feb. 22, 2023.

The final approval hearing for the settlement is scheduled for March 10, 2023.

To receive a settlement payment, class members must submit a valid claim form by April 21, 2023.

Who’s Eligible

Individuals insured under a Washington American Family policy who were paid because a vehicle they owned (not leased, rented or borrowed) was declared a total loss and who received a total-loss valuation based on an “Autosource” estimate that took a “typical negotiation” discount.

Potential Award

Varies

Proof of Purchase

N/A

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

04/21/2023

Case Name

Yermakovych, et al. v. American Family Mutual Insurance Co., Case No. 21-2-09966-8, in the Washington Superior Court for the County of King

Final Hearing

03/10/2023

Settlement Website

WATotalLossSettlement.com

Claims Administrator

Yermakovych v. American Family Insurance Settlement Administrator
P.O. Box 6175
Novato, CA 94948-6175
[email protected]
866-755-1875

Class Counsel

Mark A Trivett 
Duncan C Turner
BADGLEY MULLINS TURNER PLLC

Daniel R Whitmore
LAW OFFICES OF DANIEL R WHITMORE

Defense Counsel

Christopher M Assise
SIDLEY AUSTIN LLP