Total Loss Claim Lawsuit Alleges Insurance Company Failed to Pay Amount Owed

An Illinois policyholder recently filed a lawsuit against his insurance company, alleging they failed to pay him fully for his total loss claim.

The plaintiff, George Pappas, alleged he was in a collision leading to his insured vehicle becoming a total loss. Pappas says he had an auto insurance policy with defendant Auto Club Insurance Association (ACIA) and was covered between Aug. 1, 2019 and Aug. 1, 2020.

The ACIA determined that the vehicle had an actual cash value of $8,892, Pappas says. He was also paid a $120 “title fee” amount. However, he claims that the actual costs of his title, registration, and license plate fees and taxes amount to $251, or $131 more than what he was paid.

When he filed his total loss claim, he alleges that the insurance company failed to pay for mandatory vehicle replacement costs, including title, registration, and license plate fees and taxes. However, Pappas claims, his insurance policy with ACIA promises to pay these costs.

Pappas filed his total loss claim lawsuit on Jan. 7, 2020, in the Circuit Court of Cook County, Illinois, on a number of counts, including breach of contract and unjust enrichment. He filed this lawsuit as a proposed class action, noting that he believes that many policyholders with the Michigan-based Auto Club Insurance Association may have been underpaid such fees as well.

“The underpayment to Plaintiff was not, on information and belief, an isolated incident,” reads the complaint. “To the contrary, it is a fundamental component of Defendant’s business practices.

“Simply stated, Defendant has systematically underpaid its insureds—including Plaintiff and the other Class members—who have suffered the total loss of their vehicles, by failing to pay the full costs of mandatory title, registration and license plate fees, despite being legally obligated to pay such costs.”

Filing a Total Loss Insurance Lawsuit

Several class action lawsuits have been filed against insurance companies over the failure to pay associated sales taxes and fees in relation to total loss insurance claims. In some cases, these lawsuits have included major companies such as GEICO.

If you bought or leased a vehicle sometime in the last five years that has been rendered a total loss, your insurance company may have a policy of regularly failing to pay all of the associated fees and taxes. You may still be owed compensation, and may be able to join or file a lawsuit for insurance underpayment.

Filing a lawsuit 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 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 Total Loss Claim Lawsuit is Case No. 2020CH00180, in the Circuit Court of Cook County, Illinois, County Department, Chancery Division.

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 five years, you may qualify to join a total loss car accident class action lawsuit investigation.

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