Michigan residents who received payment from their insurance company for a totaled vehicle.
What’s Going On?
Allegations have surfaced that some car insurance companies are failing to include the cost of sales tax and certain fees when paying out claims for totaled vehicles. A class action lawsuit could help policyholders get back the difference between what they were paid and what they should have been paid.
Attorneys working with ClassAction.org would like to speak to Michigan residents who submitted a claim to their insurance company after totaling their car.
Drivers may not be getting fully reimbursed for the true value of their cars because some insurance companies are allegedly failing to include the cost of sales tax and certain fees in their payouts.
A number of auto insurers have already been hit with lawsuits over this alleged practice, and now attorneys working with ClassAction.org are investigating whether other insurance companies can be sued.
Total Loss Claims: Were You Properly Reimbursed for Taxes, Fees?
Recent class action lawsuits allege that some auto insurers’ total loss payouts don’t always reflect the full replacement cost of a totaled vehicle.
Specifically, the suits claim that insurers are failing to reimburse policyholders for sales tax, title transfer fees, registration fees, and tag transfer fees in direct violation of their contracts.
The suits argue that these costs are unavoidable when buying or leasing a new car and therefore should be included in the payout for a totaled vehicle.
Depending on the totaled car’s age, make and model, these fees can add up to hundreds – or even thousands – of dollars. For instance, in one lawsuit against State Farm, the plaintiff alleges that she never received payment for sales tax, which totaled more than $7,000.
How a Class Action Lawsuit Can Help
A class action lawsuit could help drivers get back the difference between what they were paid and what they should have been paid for their totaled vehicle. A successful lawsuit could also require auto insurers to change the way they calculate total loss payouts and serve as a warning to other auto insurers currently engaged in this practice.