Total Loss Undervaluation Lawsuit Filed Against State Farm in North Carolina
A North Carolina State Farm policyholder, Craig Brewer, has filed a class action lawsuit against the insurance company, alleging undervaluation of total loss.
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.
According to the suit, Brewer's total loss payout was reduced by 5.5%, while other class members' payouts were reduced 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.
The lawsuit does not require revaluation of the total loss vehicles.
Author's summary: State Farm faces lawsuit over undervalued total loss payouts.
- States with similar lawsuits: 6
- Reduction in total loss payout for Brewer: 5.5%
- Reduction in total loss payout for class members: 4-9%