Total Loss Undervaluation Lawsuit Filed Against State Farm in North Carolina
A class action lawsuit has been filed against State Farm in North Carolina, alleging that the insurance company undervalued total losses for policyholders.
The lawsuit, similar to those filed in six other states, claims that State Farm reduced the retail cost of comparable vehicles, resulting in lower total loss payouts for policyholders.
In the case of plaintiff Craig Brewer, State Farm's alleged reduction resulted in a 5.5% decrease in his total loss payout. The suit alleges that for each class member, the reduction was between 4-9%.
[T]he plaintiff only contests State Farm’s blanket reduction of the retail cost of comparable vehicles on behalf of himself and the class,” the suit states. “Therefore, none of the total loss vehicles have to be revalued.
Author's summary: State Farm faces lawsuit over total loss undervaluation.