Root Insurance total loss $1.5M class action settlement

Root Insurance agreed to pay nearly $1.5 million as part of a settlement to resolve a class action lawsuit claiming the company failed to include sales tax on total loss payments to Missouri policyholders.

The settlement benefits Missouri automotive insurance policyholders insured by Root Insurance who submit a total loss physical damage claim between Jan. 5, 2011, and Aug. 4, 2022.

Root Insurance is an insurance company that specializes in automotive coverage. The insurance company entices customers with benefits such as roadside assistance and affordable premiums.

According to a class action lawsuit, Root Insurance violated its own policy terms by failing to compensate policyholders for sales tax on their total loss vehicles. 

Root Insurance policies allegedly promise to pay consumers “applicable sales tax” as part of their loss payments. The insurer fails to meet these obligations and denies consumers hundreds or thousands of dollars in sales tax, the plaintiffs contend.

Root Insurance hasn’t admitted any wrongdoing but agreed to a class action settlement of over $1.49 million to resolve these allegations.

Under the terms of the Root Insurance settlement, class members can receive a sales tax payment based on the adjusted value of their vehicles at the time of the total loss. Class members will be compensated for sales tax at an average rate of 7.76%. Exact payments may vary but could be hundreds or thousands of dollars, depending on the value of class member vehicles.

Root Insurance has agreed to clarify its sales tax practices in Missouri. Specifically, the insurer will remove language in its policies promising to pay “applicable sales tax” as part of total loss payments. These changes have been sent to the Missouri Department of Insurance for approval.

The deadline for exclusion and objection is Dec. 31, 2022. 

The final approval hearing for the Root Insurance total loss lawsuit settlement is scheduled for Jan. 30, 2023.

In order to receive settlement benefits, class members must submit a valid claim form by Feb. 4, 2023.

Who’s Eligible

Missouri automotive insurance policyholders insured by Root Insurance who submit a total loss physical damage claim between Jan. 5, 2011, and Aug. 4, 2022.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

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

02/04/2023

Case Name

Final Hearing

01/30/2023

Settlement Website

AutoLossTaxSettlement.com

Claims Administrator

Settlement Administrator
Hess v. Root Insurance Company
PO Box 25481
Santa Ana, CA 92799
info@autolosstaxsettlement.com
888-369-3791

Class Counsel

Martin L Daesch
Jesse B Rochman
Craig W Richards
ONDERLAW LLC

Rachel Dapeer
DAPEER LAW PA

Defense Counsel

Jennifer L Mesko
TUCKER ELLIS LLP