Quantum Legal is investigating claims against insurance companies that fail to reimburse insureds for sales tax, title fees, and other car fees or taxes, including transfer taxes/fees as required by state law and/or the insurance policy. When you are in an accident, sometimes instead of repairing your vehicle, the insurance company will deem the automobile to be a total loss. In such instances of a total loss, the insurance company pays you the replacement value of a comparable car instead of fixing the damaged one. However, insurance companies may not reimburse you fully for your loss by excluding sales tax, title fees, and/or other costs or fees that you incurred in purchasing a replacement vehicle.
Under most auto insurance policies, in the event of a total loss, the insurer is supposed to provide you with an amount comparable to the cost of buying a replacement vehicle. Mandatory taxes and fees incurred in the purchase of such a replacement vehicle, including state sales taxes, title transfer fees, and other taxes, costs or fees should be included by the insurance company when calculating the settlement amount for a total loss because these taxes and fees are a part of the total cost incurred by you to buy a replacement vehicle.
In 29 states, including California, Florida, Illinois, New Jersey, New York, Pennsylvania and others, the law requires that the insurance company reimburse you for these costs in the event of a total loss from a car accident. Companies such as GEICO, Elephant, Commerce and others have been accused of failing to reimburse insureds for such taxes and fees. If you have been in a car accident and your car was declared a total loss by the insurance company but you did not receive reimbursement for sales taxes or title fees, please contact Quantum Legal.