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State Farm Vehicle Insurance: What Price for Totaled?
Los Angeles, CA: Most people assume that if they are ever in a car accident and their vehicle is totaled, they will receive the appropriate dollar amount for their vehicle, based on the vehicle's worth. However, car owners who deal with State Farm Auto Insurance may not necessarily receive an amount related to what their car is worth. Some car owners are now investigating the possibility of a lawsuit against State Farm, alleging the company used illegal tactics to determine how much their vehicle was worth.
At issue is the method State Farm Auto Insurance used to determine how much to pay on claims for totaled vehicles. State Farm allegedly did not do proper research to determine the asking price or actual price of similar vehicles in the region. This violates California insurance law and likely resulted in people receiving less money than they deserved for their totaled vehicles. Californians who received a total loss settlement after May 2007 could have been affected by State Farm's illegal tactics.
 Customers with a totaled vehicle claim can do a few things to protect themselves before they settle with their insurance company. They can get an independent appraisal for the value of their vehicle. Doing so would help to indicate whether or not the amount offered by the insurance company is reasonable. They can also ask around to determine the average asking price of similar vehicles in their local area to get an idea of what their vehicle was worth pre-accident.
Other companies have come under fire for using unfair tactics to determine the worth of a totaled vehicle. One lawsuit, Buratovich vs. Farmers' Insurance Exchange, Farmers' Insurance Co. of Arizona and CCC Information Services Inc. alleged that Farmers' Insurance used CCC's valuation services only because they resulted in the lowest payout for total loss claims. Allegedly, CCC would visit dealerships nationwide and ask not for the asking price of a similar vehicle, but for the lowest possible price that the dealer would accept for the vehicle. The lowest possible price accepted for a vehicle could be a lot lower than a vehicle's actual worth meaning that the claimant would receive less money than they should have for his totaled vehicle.
People who purchase car insurance in good faith have the right to receive the actual value for their car if it is totaled in an accident. They should not have to worry about whether or not their insurance company is giving them fair value for their vehicle.
State Farm Undercompensation Legal Help If you feel your car was undercompensated, please contact a lawyer involved in a possible [State Farm Undercompensation Lawsuit] who will review your case at no cost or obligation.
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