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| The Truth about Auto Repair | Auto Insurance Claims | Diminished Value | |||
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The nation’s largest auto insurer, State Farm, is sending letters to about 32,000 registered owners of improperly titled vehicles suspected to remain in use. The insurer says it made “mistakes” disposing of salvage between June 1997 and 2002 allowing a small percentage of autos it acquired during claims settlements to be sold without branded titles.
State Farm claims it discovered the error in Summer 2002 as it conducted an internal review of salvage disposal procedures. The company came clean about its misdeeds in November 2003, motivated, perhaps, by the possibility that Indiana was considering criminal charges against it for similar misconduct.
Given that the offense was geographically widespread, State Farm could have opted to confess almost anywhere including in Illinois, the state it calls home. Instead, it chose Iowa, a friendly haven to insurers. This clever move resulted in State Farm handpicking the lead counsel that would broker a deal with other Attorneys General to “punish” it.
State Farm admitted no wrongdoing and offered to pay consumers $40 million. Another million would be split among Attorneys General nationwide. In exchange the company would not be prosecuted.
The settlement, according to State Farm, is expected to net consumers $400 to $20,000 per vehicle, but only current owners are entitled to recovery. Moreover, only those whose cars remain registered with the Bureau of Motor Vehicles qualify for settlement. The exact amount each claimant will receive will vary depending on current car values and the number of consumers accepting State Farm’s terms.
WV Senior Assistant Attorney General, Charli Fulton confirmed there are just over 80 affected consumers in West Virginia with qualifying cars. Approximately 500 additional vehicles were covered but are no longer registered, making them ineligible. That’s good news for consumers still on the list. Less eligibility means more money to divvy up among those who qualify.
Says Fulton, “Consumers still have to get their cars inspected and titles are going to be branded irrespective of decisions to accept or deny State Farm’s offer.”
Titles will first be branded “salvage.” The cars will then go through WV’s reconstructed safety inspection, a more rigorous inspection than a simple VIN verification. Only then will a vehicle’s title brand go from “salvage” to “reconstructed.”
Should consumers accept State Farm’s offer?
There is no obligation on the part of consumers to accept money offered by State Farm. Consumers hoping for a more lucrative resolution may opt out electing to hire private counsel rather than be represented under the state's agreement.
Before receiving checks from State Farm, participating consumers will first be required to sign an agreement with the insurer aimed at preventing car owners from bringing additional civil or criminal actions against the company. Fulton warns that while the agreement may insulate State Farm, it doesn’t protect dealers who sold salvage cars to consumers without proper disclosure and titling.
In final comments, Fulton issued this advice to consumers: “Beware of buying used cars. If you do give consideration to them, at the very least, have them checked by someone knowledgeable in both body and mechanical issues before shelling out hard-earned dollars.” Learn More by Reading Linked Articles Below: Learn More by Reading Linked Articles Below: Learn More by Reading Linked Articles Below: Learn More by Reading Linked Articles Below: Learn More by Reading Linked Articles Below: Learn More by Reading Linked Articles Below: Learn More by Reading Linked Articles Below: Learn More by Reading Linked Articles Below: Learn More by Reading Linked Articles Below: Learn More by Reading Linked Articles Below: Learn More by Reading Linked Articles Below: content & design 2002-2008 David Williams and SafeCollisionRepairs.com
For more than ten years, David Williams of Wheelersburg, Ohio's Safe Collision Repairs has worked with consumers and attorneys in the tri-states of Ohio, Kentucky and West Virginia to expose unsafe auto repairs and maximize recovery on auto insurance claims. Some of the company's services include Post-Repair Inspections, Prepurchase Inspections, Auto Damage Assessments, Lemon Law Investigations, Expert Court Testimony and Diminished Value Calculations using an advanced version of Network Information Communication's WreckCheck program.
The content expressed on this website and in the article above represents the opinions of David A. Williams. Williams is neither an attorney nor public insurance adjuster, but is an expert, consultant, and writer specializing in the field of automotive collision repair and valuations. The information provided herein is not intended to be a substitute for legal or insurance advice. Because collision repair is a continually evolving science, any text, materials or links found herein are provided without claim or guarantee to their accuracy or completeness.
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Diminished Value l Auto Collision Repair Issues l Auto Insurance Issues l Auto Manufacturing and Safety l Auto Sales and Consumer Issues l Diminished Value Slideshow
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content & design 2002-2009 David Williams and SafeCollisionRepairs.com |
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DISCLAIMER The content expressed on this website represents the opinions of David A. Williams. Williams is neither an attorney nor public insurance adjuster, but is an expert, consultant, and writer specializing in the field of automotive safety, collision repair and valuations. The information provided herein is not intended to be a substitute for legal or insurance advice. Because collision repair is a continually evolving science, any text, materials or links found herein are provided without claim or guarantee to their accuracy or completeness. Advertisements seen on Safe Collision Repairs website must not to be considered endorsements of products or services as we maintain no relations with these companies. Vendors and service providers receiving our endorsement will be clearly identified by us on this website. |