Ohio Driver Says Insurance Claim Total Loss Coverage Should Cover Taxes, Fees

An Ohio driver says her insurance company wrongfully processes insurance claim total loss payments, leaving policyholders short-changed.

Plaintiff Lindset Williams-Diggins was reportedly insured by Permanent General Assurance for her 2006 Chevrolet Impala LS. In March 2018, Williams-Diggins allegedly got into a car accident while driving her Impala. The vehicle was reportedly declared a total loss with the value of the vehicle determined to be $2,968 with 7.25 percent sales tax of $215.18 for a total of $3,183.18.

However, Williams-Diggins claims that she was not paid sales tax as a part of her insurance payout. She claims that this was a direct breach of her contract with the insurance company.

“Permanent General’s failure to pay [actual cash value] sales tax, title fees, and registration fees ‘at the time of the loss’ constituted a breach of the Policy because such fees are mandatory costs necessary for the replacement of the totaled Insured Vehicle,” the insurance claim total loss class action lawsuit argues.

In her class action, Williams-Diggins claims that the “actual cash value” in Ohio includes sales tax, title fees, and registration fees because these are all costs associated with replacing a car and “are necessary to put the insured in the same position that he or she was before the loss”.

William-Diggins seeks to represent a Class of Ohio residents insured by Permanent General who suffered a first-party total loss of a covered vehicle within the last eight years. Class Members include individuals whose claims were adjusted by Permanent General as a total loss claim and resulted in payment, but were not paid the full sales tax, title transfer fees, and registration fees on their claim.

The total loss class action lawsuit seeks compensatory damages, other damages, court costs, and attorneys’ fees.

What a Total Loss Claim Should Cover

After an accident, a vehicle is declared to be a total loss if the cost to repair the vehicle exceeds its insured value. It is important to note that not all total loss vehicles look the same. For example, a low value car may be declared a total loss even if the damage doesn’t render the vehicle unroadworthy. Even if the damage is to the paintwork or upholstery, a vehicle could be considered be a total loss if the insured value is low enough.

According to State Farm, a prominent auto insurance provider, the actual cash value (ACV) of a vehicle will depend on the car’s year, make, model, mileage, and overall condition. The policy’s deductible is subtracted from this value and the settlement is awarded to the owner, lien holder, or both.

For most individuals, the total loss claim can be stressful, but it is usually not impossible to navigate. However, others run into issues with their insurance company that may require legal action to resolve.

The Insurance Claim Total Loss Class Action Lawsuit is Williams-Diggins v. Permanent General Assurance Corporation of Ohio, Case No. CV 19 912705, in the Court of Common Pleas for Cuyahoga County, Ohio.

UPDATE: The Top Class Actions Total Loss Investigation is open. If your Ohio car insurer failed to pay the taxes and fees when your car was totaled, submit your information here!

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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