Can You File a Liberty Mutual Lawsuit for Total Loss Insurance?

Like most kinds of insurance, total loss insurance is something you hope you never actually need. But it is important to be prepared so that if you are in a car accident where your car becomes totaled, you’ll know what to do. Some insurance companies may even try to withhold some of the compensation you’re owed, but you deserve to be compensated fully for your total loss vehicle.

If you were denied full compensation for your total loss vehicle, including taxes and fees, you may be able to file a Liberty Mutual lawsuit and pursue the compensation to which you are entitled.

What Is a Total Loss?

Your vehicle may become a “total loss”—that is, it is considered “totaled”—if the damage to your vehicle is more than your vehicle’s worth. More specifically, the insurance company will typically total your vehicle under these circumstances:

• The vehicle cannot be safely repaired.
• The vehicle repairs will cost more than the vehicle’s value.
• The damage exceeds the damage threshold determined by your state (ranging from 50 and 100 percent, depending on the state).

But how is the worth of a vehicle determined?

How Does Liberty Mutual Calculate Total Loss?

Different insurers may calculate total loss a little differently. Most of the time, the payout from a total loss claim is based on Actual Cash Value—that is, what you might have been able to sell your vehicle for right before the accident totaled it. According to the Liberty Mutual website, the factors that will help them determine if a vehicle is a total loss include:

• Severity of damage.
• Vehicle age.
• Vehicle condition.
• Market value of vehicle before the accident.
• Salvage value of the damaged vehicle.

One important caveat here is that there are individual state laws that will supersede the typical Liberty Mutual approach by dictating how total losses must be calculated.

On top of compensation for the car itself, 41 states require insurance companies to also cover certain associated sales taxes and fees. A full list of these states can be found on our investigation page.

The Liberty Mutual Class Action Lawsuit

Some consumers have filed a class action lawsuit against Liberty Mutual. Ohio residents Sharon M. and Charles C., who were insured under Liberty Mutual’s private passenger auto insurance (PPA) policies allege in their Liberty Mutual lawsuit that the insurance company breached their contract.

According to the Liberty Mutual lawsuit, the plaintiffs’ policies include total loss insurance, which contractually obligated the insurer to pay a number of fees and taxes as part of the compensation for the totaled vehicle. Specifically, the plaintiffs alleged that Liberty Mutual failed to pay the full sales tax, title transfer fees, and registration fees that their policies made clear were due to them.

The lawsuit against Liberty Mutual alleges that under Ohio total loss insurance law, the compensation for a totaled vehicle must include the vehicle’s sales tax and transfer fees, because these are required by the state for the replacement of a vehicle.

The Liberty Mutual class action lawsuit was filed on behalf of themselves and all those with a Liberty Mutual PPA insurance policy who suffered a total loss claim and Liberty Mutual failed to pay full sales tax, title-transfer fees, and registration fees due to them per their policies.

The Liberty Mutual lawsuit was filed on Oct. 12, 2020, in the U.S. District Court for the Southern District of Ohio.

Filing a Liberty Mutual Lawsuit

A growing number of consumers are coming forward with total loss litigation against their insurance company. If Liberty Mutual totaled your vehicle sometime in the last eight years, but you were not compensated for the associated taxes and fees as part of the total loss car insurance settlement, you may be able to join a Liberty Mutual class action lawsuit and pursue compensation. Relevant taxes and fees include:

• Full sales tax.
• Title-transfer fees.
• Registration fees.

Filing a Liberty Mutual lawsuit can be a daunting prospect, especially after the trauma of a car accident, so Top Class Actions has laid the groundwork for you 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.

The Liberty Mutual Total Loss Insurance Lawsuit is Case No. 1:20-cv-00668-DRC, in the U.S. District Court for the Western Division of the Southern District of Ohio.