Normand PLLC
Edmund Norrmand
Licensed in Florida

Total Loss Coverage: Who’s Affected?

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Did you have a car (owned or leased) totaled in the last 5 years?

Did your insurance company cover the value of the car but not the sales tax and other fees?

Insurance companies may not be reimbursing their policyholders for the full value of their total loss vehicle, according to recent consumer allegations.

Total loss class action lawsuits filed against insurance providers claim that the companies violate their own contracts by failing to reimburse policyholders for sales tax, title transfer fees, tag transfer fees, and more after a total loss car accident.

Consumers taking action against insurance companies argue that they are owed hundreds to thousands of dollars.

Class action claims have been filed against insurance companies such as GEICO, but other insurance companies may also be guilty of underpaying their policyholders following a total loss car accident.

Do I Qualify?

You may qualify for this investigation under the following circumstances:

  • Your vehicle was totaled after a car accident or motorcycle accident
  • Your insurance company paid for the total loss—NOT the other driver’s insurance company
  • Your insurance company did not reimburse for sales tax and other fees
  • The accident took place within the last 5 years

See if you qualify by filling out the free form on this page. 

Overview: Total Loss Vehicle

Following a car accident, an insurance adjuster investigates the crash and the damage to the vehicle to make a determination regarding reimbursement.

The insurance company will determine that the vehicle is a total loss under the following circumstances:

  • If the vehicle cannot be safely repaired
  • If the vehicle repairs are going to cost more than the value of the vehicle
  • If the damage exceeds the damage threshold for your state. (In some states the car is totaled if the damage is 50 percent of the pre-accident value all the way to 100 percent.)

What happens next depends on individual policies and insurance companies, but policyholders are often offered the fair market value of the vehicle based on the state of the vehicle before the accident occured.

Read more: What Is a Car Total Loss?

Total Loss Vehicle Payout

The payout you receive from your insurance company is typically based on the Actual Cash Value of the vehicle. This looks at how much you could have sold your vehicle for right before the accident happened.

Actual Cash Value is based on the following variables:

  • Vehicle year
  • Vehicle make
  • Vehicle model
  • Mileage
  • Physical wear and tear
  • Condition of interior
  • Condition of tires

In 34 states in the country, your insurance company is also supposed to cover the sales tax and fees for title and registration: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Kansas, Kentucky, Maine, Maryland, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New  York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia and Wisconsin.

Insurance Total Loss Class Action Lawsuits

Several insurance companies have been hit with total loss class action lawsuits for failing to cover the taxes and other fees when calculating the total loss of the vehicle.

One insurance company that has faced total loss lawsuits is GEICO. These lawsuits allege that the insurance company fails to pay costs associated with a car accident total loss including sales tax and title transfer fees.

Plaintiffs claim that costs such as sales tax and title transfer fees are included in GEICO insurance policies and that failure to pay these costs is a breach of contract.

The total loss class action lawsuits argue that sales tax and other fees “are components of ‘actual cash value’ under the policy.”

Policyholders argue that costs such as sales tax and title fees are mandatory when purchasing or leasing a replacement vehicle to replace a total loss vehicle.

Sales tax varies depending on each state but can be hundreds to thousands of dollars. Adding fees to this total means that the lack of reimbursement can cause significant financial strain on policyholders.

For example, the GEICO policyholder who filed an insurance total loss class action lawsuit in Florida was forced to pay a minimum of $75.25 to transfer her title and 6 percent of the replacement car’s value in sales tax. The total was around $1,500.

An Ohio woman filed a total loss lawsuit against Permanent General Assurance after her car was totaled in a car accident in March 2018, but the insurance company allegedly short-changed her by failing to pay for the sales tax in the payout she received.

Read more: Were You Fairly Compensated in the Vehicle Total Loss Process?

If you were not compensated for sales tax and other fees by your insurance company after experiencing a car accident total loss in the last 5 years, you may qualify to join a FREE total loss accident class action lawsuit investigation.

Fill out the form on this page for a free case evaluation.


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Get Help – It’s Free

Join a Free Total Loss Accident Class Action Lawsuit Investigation

If you qualify, an attorney will contact you to discuss the details of your potential case at no charge to you.

PLEASE NOTE: If you want to participate in this investigation, it is imperative that you reply to the law firm if they call or email you. Failing to do so may result in you not getting signed up as a client or getting you dropped as a client.

E-mail any problems with this form to:

  • We tell you about cash you can claim every week! Subscribe to our free newsletter today.

After you fill out the form, the attorneys who work with Top Class Actions will contact you if you qualify to let you know if an individual lawsuit or class action lawsuit is best for you.


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