When a vehicle is declared a total loss after an accident, what costs must an insurance company pay? The complaint for this class action alleges that Grinnell Select Insurance Company does not pay the sales tax on the value of the vehicle, even though its policies state that it will do so.
Plaintiff Travis Geist owned a 2008 Chevrolet Impala, which he insured with Grinnell. The policy form was attached to the complaint at filing as Exhibit A.
Sometime around January 2021, it suffered damage, and Geist filed a claim. Grinnell declared the vehicle a total loss.
To determine the value of vehicles, the complaint alleges, Grinnell uses a third-party vendor, Mitchell International, Inc., which looks for the prices of similar vehicles. Mitchell looks for comparable vehicles, then adjusts their pricing for differences in mileage, trim, and options.
Mitchell’s report came up with a value of $5,799.91. The loss valuation report was attached to the complaint at filing as Exhibit B.
Grinnell rounded up to $5,800. Then it subtracted Geist’s $500 deductible, for a payout of $5,300. The Settlement Letter was attached to the complaint at filing as Exhibit C.
However, Geist’s policy, as quoted in the complaint, says, “We may pay for loss in money…” and “If we pay for the loss in money, our payment will include the applicable sales tax for the damaged or stolen property.” The $5,300 payment did not include sales tax on the price of a comparable vehicle. The complaint alleges, “By failing to include sales tax in making payment for the loss, Grinnell breached its contract” with Geist.
The complaint alleges, “Nothing in the Policy unambiguously excludes sales tax or contradicts [Grinnell’s] promised to pay sales tax where it pays for the loss in money. To the extent the applicable limitation on liability is the vehicle’s actual cash value, such limitation does not operate to exclude or subvert [Grinnell’s] explicit and unambiguous promise to include a payment for sales tax in its loss payments.”
The sole count in the complaint is breach of contract.
The class for this action is all Missouri insureds with policies issued by Grinnell covering vehicles with private-passenger auto physical damage coverage for comprehensive or collision loss who, within the applicable statute of limitations before the filing of this lawsuit and the date the class is certified, submitted a first-party property damage claim determined by Grinnell to constitute a covered loss claim, where the loss claim payment did not include sales tax.
Article Type: LawsuitTopic: Insurance
Most Recent Case Event
Grinnell Total Loss Payouts Omit Sales Tax Missouri Complaint
April 18, 2022
When a vehicle is declared a total loss after an accident, what costs must an insurance company pay? The complaint for this class action alleges that Grinnell Select Insurance Company does not pay the sales tax on the value of the vehicle, even though its policies state that it will do so.
Grinnell Total Loss Payouts Omit Sales Tax Missouri ComplaintCase Event History
Grinnell Total Loss Payouts Omit Sales Tax Missouri Complaint
April 18, 2022
When a vehicle is declared a total loss after an accident, what costs must an insurance company pay? The complaint for this class action alleges that Grinnell Select Insurance Company does not pay the sales tax on the value of the vehicle, even though its policies state that it will do so.
Grinnell Total Loss Payouts Omit Sales Tax Missouri Complaint