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Vehicle Loss Class Action Lawsuit FAQ

Being involved in an auto wreck is a catastrophic experience. A totaled vehicle can lead to enormous financial losses—made worse when the auto insurer fails to pay policyholders the full amount after the accident. Here’s what vehicle owners should know about vehicle loss class action lawsuits. Auto insurance is designed to cover losses after a vehicle accident. But many insurance companies do not reimburse policyholders for the full value of their total loss vehicle. They often skip reimbursing them for sales tax, title transfer fees, tag transfer fees, and more. By withholding full payouts, the insurer robs the policyholders of hundreds to thousands of dollars. As a result of insurers who violate their own contracts by not fully reimbursing policyholders, class action lawsuits are being filed. Major insurers and smaller ones, too, are being held accountable. Failure to pay title transfer fees and sales tax is a breach of contract. Consumers who’ve been involved in a car accident in the last five years and have not been fully reimbursed by their auto insurer can join a class action lawsuit to recover payouts they are lawfully due. total vehicle loss

What is a total loss class action lawsuit investigation?

A total class action lawsuit is a legal path consumers can take when insurance providers violate their own contracts by failing to reimburse policyholders for sales tax, title transfer fees, tag transfer fees, and other costs after a vehicle accident. These fees are part of the actual cash value under the policy.  

How do I know if I qualify for the totaled car accident class action?

Consumers who qualify for the totaled car accident class action are those whose vehicle was totaled after a car accident within the last five years. The second qualifier is that their insurer paid for the total loss rather than the other party’s insurance company.  

Does the lawsuit also cover a total loss lease car or financed car?

The insurance policy coverage determines whether the lawsuit will cover a total loss lease car. Coverage on rentals normally runs a maximum of 30 days—a window that is too brief to resolve a total loss claim, especially in cases when the insured does not accept the insurer’s offer.  

How does the insurance company determine if your car should be totaled?

An insurance company deems a vehicle to be a total loss when the cost to repair it to its pre-loss state exceeds its actual cash value. The insurance company’s standards, the vehicle’s condition, and state laws are also considered when arriving at the decision to declare it a total loss.  

What is included in a total loss settlement from my insurance company?

When a total loss car accident occurs, the owner is subject to fees, such as the vehicle’s sales tax and title transfer fees. The day of the accident is when the vehicle’s fair market value is assessed. The insurer assesses damages to the car to determine the amount of reimbursement. Under their own contracts, insurance companies are obligated to cover the costs of all fees associated with the total loss car accident. But in an effort to pay out less money on a claim, many insurers simply cover the cost of the car rather than including all related fees.  

What should I do if my car is totaled by the insurance company and I do not agree with the settlement?

Consumers who do not agree with the settlement amount are urged to dispute it. The auto insurer will request documentation to support the reasons behind the disagreement. The insurer will review the documentation for accuracy and its applicability to the total loss vehicle. If consumers continue to disagree, an appraisal is warranted. State laws and the terms of the insurance policy determine how the process will resolve the differences. The insurance company hires the appraiser, unless the policyholder hires an independent appraiser to appraise the vehicle. Both the insurer’s appraiser and the consumer’s appraiser compile reports and attempt to reach an agreement on the valuation of the vehicle before scheduling a formal hearing. When consumers do not hire their own appraiser, they are bound by what the insurer deems is an appropriate payout.  

Under what laws can a consumer sue the insurer?

A lawsuit is another option when the insurer treats its policyholders unfairly. Low-ball offers by the insurance company warrant a lawsuit. A forced appraisal is also grounds for a lawsuit. Delays in making payments is an unfair practice by insurance companies and should be followed by a lawsuit. When insured parties are not fully reimbursed for the cash value of their total loss vehicle, it’s important to seek legal help. Anderson + Wanca is a law firm with extensive experience in class action lawsuits, especially those against auto insurers who neglect to pay their policyholders their rightful due. Sales tax, title transfer fees, registration fees, license plate transfer fees, and other mandatory costs associated with a total loss vehicle should be paid to the policyholders. Although these fees seem insignificant to an individual policyholder, they compound when a large group of insured claimants are affected.  

Call Our Vehicle Loss Class Action Attorneys

The class action attorneys at Anderson + Wanca can help you and other insured plaintiffs recover the fees. Auto insurers should abide by their own contracts. When they don’t, our lawyers will fight for your rights and ensure companies are held accountable for their wrongdoings. A proper settlement is within reach when you discuss your case with our consumer rights attorneys. We will determine whether you are being offered a fair settlement by reviewing your policy, settlement documents, and invoice for the replacement vehicle. If not, we’ll help you join a class action lawsuit. A class action lawsuit can recoup the compensation that is rightfully yours. Discuss your total loss claim with the experienced lawyers at Anderson + Wanca and we’ll advocate for you. We work with attorneys across the country. Call our office to speak with a skilled class action lawyer today.