National Assessing & Engineering

State Farm Lawsuit

American Auto Insurer Faces Lawsuit Over Adjustment of Write-Off Values

State Farm, America’s largest auto insurer, are facing a proposed class-action lawsuit which accuses them of systematically underpaying thousands of write-off claims by applying a percentage discount to the value of comparable vehicles to account for “typical negotiation.”

State Farm Lawsuit

The plaintiffs are accusing State Farm of conducting a “blatant and unlawful scheme” by applying “a deceptive, arbitrary and baseless ‘typical negotiation adjustment’” to its researched vehicle values.

The lawsuit claims that the adjustment of 4-11% which applied to similar used vehicles’ internet prices, which State Farm use to set the actual cash value (ACV), “is based on no negotiations, typical or otherwise, and does not reflect market realities.”

The lawsuit is being brought on by 20 plaintiffs, each from a different state, who are seeking class status for “All persons insured by [State Farm] in any state who, from the earliest allowable time through the date of resolution of this action, received a first-party total loss valuation and payment on an automobile total loss claim that included a ‘typical negotiation’ or similar adjustment.’”

Basically, what is happening here is State Farm has found a way to reduce the amount it pays out for claims, based on lowering the value of the vehicle through supposed “negotiation”.

This case brings about an important point and shows why it’s important to get your car assessed if you are involved in an insurance claim.

Insurance companies will always do what they can to payout the minimum possible, so getting your car assessed can often mean getting a significantly larger payout, to ensure that the car can be repaired properly and all the costs covered.

We at National Assessing & Engineering are independent car assessors who are here to ensure that you get a fair payout for your insurance claim. Speak to us today to get your car assessed!