Auto Insurance Underpay Class Action

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car insurance underpay class action

Major Auto Insurers Could Owe Drivers In Unpaid Total Loss Fees

The country’s most popular auto insurance companies may be underpaying drivers who totaled their cars. These drivers could be owed money by their insurance company for taxes and other total loss fees associated with the loss of their vehicles. 

One of the nation’s top auto insurers recently lost a class action brought by drivers demanding full payment for their totaled vehicles. Geico was ordered to pay Florida drivers for unpaid title and license plate fees by U.S. District Judge Paul G. Byron.

The lawsuit was filed in 2017 and accused Geico of underpaying Florida drivers who totaled their cars. The suit ended in July 2019 with a ruling in favor of plaintiffs. Each plaintiff was entitled to about $80 in damages. 

Now, other national auto insurance companies are under scrutiny for similar allegations. Nearly all major auto insurers could face class action lawsuits for allegedly failing to cover all taxes, fees, licensing, tags, titles, etc. when paying out on total loss claims. The total value of these unpaid total loss fees could be in the millions of dollars. 

Class actions are now forming against the nation’s top insurance companies in several states including: California (CA), Florida (FL), Illinois (IL), Michigan (MI), New Jersey (NJ), Ohio (OH), Pennsylvania (PA), and Texas (TX). 

If you totaled your car and received a payment from your insurance company that did not include payment for titles, taxes, and other total loss fees, you may be eligible to join a class action lawsuit and you may be entitled to financial compensation. 

Call Schmidt National Law Group today at 800-631-5656 to speak with a member of our legal team and see if you qualify for an Auto Insurance Underpay Class Action. 

auto insurers underpay total loss fees

Top Auto Insurers Could Face Class Actions

These top auto insurance companies could face class action lawsuits brought on behalf of drivers who totaled their cars and did not receive the full compensation. 

The nation’s top auto insurers who could potentially face lawsuits include: 

  • State Farm
  • Geico
  • Allstate
  • Progressive
  • Farmers Insurance
  • USAA Insurance
  • Liberty Mutual
  • Nationwide
  • American Family
  • Travelers
total loss fees class action

What Happens When You Total Your Car?

Experiencing an accident that results in the total loss of your vehicle is scary and unnerving, and dealing with your insurance company afterwards can be just as difficult. 

If you’re involved in a serious accident, your insurance company may decide your car is a total loss if it cannot be repaired safely, repairs would cost more than the car is worth, or the amount of damage is severe enough that state laws require it. 

A claims adjuster will assess your car to figure out its value. The adjuster will take into account things like mileage, condition of the body, interior, and tires when making their decision. The adjuster will look for similar models for sale in your area, and based on the pre-accident condition of your car will determine the total loss estimate using the comparable cars. 

In addition to the value of the car, 34 states also allow drivers to collect the cost of sales tax, title, registration, and other fees. 

If you live in a state that allows you to collect the cost of these fees and your insurance company fails to pay you, you might be entitled to money damages. 

There could be class action lawsuits forming against your auto insurer for underpayment of total loss fees. Call 800-631-5656 today to see if you qualify for a class action lawsuit