Did You Make a Total Loss Claim under Ohio Car Insurance from Allstate?

If you have Ohio car insurance through Allstate and made a total loss claim, you may not have been fully compensated for what you’re rightfully owed under Ohio total loss law, and you may be able to file a lawsuit against Allstate Insurance and join the growing pile of total loss insurance class action lawsuits.

What Is the Ohio Total Loss Law?

A vehicle is considered a “total loss” after a car accident in which the insurance company decides that the vehicle would be more expensive to fix than it is actually worth. Colloquially, we often refer to this as the car being “totaled“.

The Balance explains that when a car is totaled, the car insurance company is responsible for covering the cost of the vehicle at the time of the crash, or the actual cash value. There are some less common policies that use stated value or agreed value instead of actual cash value.

Generally included in the actual cash value of the vehicle are extra fees like sales tax or title and registration fees for the new vehicle you purchase. Some insurance companies, however, may not be reimbursing you for these costs even though certain state laws require it.

Many people who have filed total loss car insurance claims have reported that the costs of title, tax, and registration were not factored into their insurer’s estimate of what it would cost to replace the vehicle. However, as these fees are mandatory when replacing a totaled vehicle, some consumers claim that insurance companies may be in violation of their own policies when they refuse to factor in these fees.

Sales tax on vehicles varies per state, but may be as high as 8% of the cost of the purchase. Additional taxes and title fees may cost tens or hundreds of dollars, and these unexpected fees may add up. Consumers who believed their car replacement would be entirely funded by their insurance may be hit with an unwelcome surprise.

If your insurance company did not include these fees in your total loss claim reimbursement you may be able to negotiate with them. From the time you purchase your replacement vehicle there is usually a 30-day limit in which you can request reimbursement for these costs if you live in a state that requires auto insurance companies to cover them.

Additionally, many consumers have claimed that insurance companies routinely undervalue vehicles and offer lowball sums as compensation for total loss accidents. In some cases, consumers have claimed that the systems insurance companies such as Allstate use to determine the worth of vehicles are arbitrary and do not accurately determine the base value of vehicles, or the adjusted value due to age or damage.

If you believe that your insurer has undervalued your vehicle, you may be able to have an independent appraiser assess the vehicle, or speak with an attorney about your legal options. Additionally, checking online for the Kelly Blue Book value of your vehicle may be an indication of what it is truly worth.

Check Ohio total loss law or your state’s laws to determine what your insurance company is required to pay after a total loss claim. Even if your state doesn’t require your auto insurance company to reimburse for sales tax, public policy generally favors the consumer regardless.

What Is the Ohio Total Loss Threshold?

Many drivers are used to something called a “total loss threshold” used to determine whether or not a vehicle is totaled after an accident. In states that use a total loss threshold, like Ohio, insurance companies compare the cost of repair against the actual cash value to determine the damage ratio.

If the percentage is above the state’s total loss threshold, the car would be considered a total loss. So what is the Ohio total loss threshold, and what does it mean for consumers?

Ohio total loss law is a little different. There isn’t actually a total loss threshold specific to Ohio. Instead, like many other states, Ohio car insurance companies determine a total loss vehicle using a system known as the Total Loss Formula (TLF). Using TLF, the insurance company determines if the cost of repairing a vehicle after an accident plus the salvage value of the vehicle is greater than the actual cash value of the vehicle.

Essentially, Total Loss Formula can be boiled down to a simple equation: Cost of Repair + Salvage Value > Actual Cash Value

If the cost of repair plus the salvage value is greater than the actual cash value of the vehicle, then it will be considered a total loss in Ohio. It can be a good idea to do your own research to estimate actual cash value of your vehicle, using online sources or even local classified ads, to come up with a ballpark of what you should be able to expect from your insurance company.

Can You File a Lawsuit Against Allstate Insurance?

If you are an Ohio resident with car insurance from Allstate, or have insurance from Ohio, and your car was declared a total loss, you may not have been reimbursed for the full value of the vehicle, such as all the associated fees and taxes. Ohio insurance policyholders may also be able to challenge a total loss settlement with Geico, USAA, and Erie.

So far, several class action lawsuits have been filed against insurance companies that failed to pay all of the sales taxes and fees associated with a total loss claim. In June 2018, a federal judge in Florida ruled in the plaintiff’s favor in one such lawsuit against GEICO.

If you bought or leased a vehicle within the last five years that has since been declared a total loss and your insurance company may have failed to pay you the full compensation that you’re due under Ohio total loss law, even if you were already compensated for your claim, you may be able to join one of the class action lawsuits already filed, or file a total loss underpayment lawsuit against Allstate Insurance.

Filing a lawsuit against Allstate Insurance can seem like a daunting prospect, especially after being in a car accident and dealing with insurance companies, so Top Class Actions has laid the groundwork by connecting you with an experienced attorney. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

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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