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 the insurance company undervalued total losses.
A policyholder, Craig Brewer, claims that State Farm reduced his total loss payout by 5.5% due to an alleged reduction of the retail cost of comparable vehicles.
The suit alleges that for each class member, State Farm reduced their total loss payouts by 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. Therefore, none of the total loss vehicles have to be revalued.
This lawsuit is similar to complaints filed in six other states.
Author summary: State Farm faces lawsuit over total loss undervaluation.