Did you have a vehicle (owned or leased) totaled while covered under an auto insurance policy 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 car accident 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.
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 5 years, you may qualify to join a total loss car accident class action lawsuit investigation.
See if you qualify by filling out the free form on this page.
Following a car accident, an insurance adjuster investigates the crash and the damage to the car to make a determination regarding reimbursement.
If the insurance adjuster finds that the loss of value or repair cost exceeds the insured value, the insurance company may deem the vehicle a “total loss” or “totaled.”
What happens next depends on individual policies and insurance companies, but policyholders are often offered the fair market value of the car as of the day of the accident.
Several total loss class action lawsuits have been filed against GEICO alleging 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 car accident 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.
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 car accident class action lawsuit investigation. Contact a total loss car accident lawyer at Shamis & Gentile, P.A. today!