Infinity Insurance Company offers auto insurance policies. The complaint for this class action alleges that, when a vehicle is totaled, Infinity does not include all required costs in its calculation of the actual cash value (ACV). It claims that Infinity either does not pay or underpays California state sales tax and state-mandated regulatory fees.
The class for this action is all individual insured under a California policy issued by Infinity Insurance company for private-passenger auto physical damage coverage with comprehensive or collision coverage, who made a first-party claim, whose claim was adjusted as a total loss under comprehensive or collision coverage, where the total loss payment did not include registration fees imposed by California, between January 14, 2018 and the date of any certification order in this case.
The complaint contends that under the standard policy form language, “Infinity is [] obligated to pay the full title, registration and regulatory fees imposed by the State of California on the purchase and registration of automobiles in the state…”
California insurers may pay a cash settlement for vehicles in the event of a total loss. The complaint quotes state regulations as saying, “This cash settlement amount shall include all applicable taxes and one-time fees incident to transfer of evidence of ownership of a comparable automobile. This amount shall also include the license fee and other annual fees to be computed based upon the remaining term of the loss vehicle’s current registration.”
Vehicles must be titled and registered for use in California. The complaint alleges, “California imposes fees on such transactions, including, but not limited to, a title transfer fee of $15.00, a registration fee of $60.00, county fees of up to $19.00, a California Highway Patrol (‘CHP’) fee of $26.00, a Transportation Improvement Fee (‘TIF’) of $25.00-$175.00, and a Vehicle License Fee (‘VLF’) of up to 0.65% of the adjusted vehicle value.”
In this case, plaintiff Kevin Carr insured his 2001 Lexus RX300 with Infinity. On or around November 12, 2018, he was in an accident while driving the vehicle. The vehicle was declared a total loss.
Infinity then used a third-party vendor, CCC to come up with an adjusted vehicle value or $3,824. The complaint claims that Infinity “added a Title Transfer fee of $15.00, then subtracted the deductible of $1,000.00, and then subtracted a miscellaneous amount of $1,075.00 for a total settlement payment of $2,146.40[.]” The Loss Settlement Letter detailing these amounts was attached to the complaint when it was filed as Exhibit C.
The complaint alleges, “Infinity did not include registration fees in making its (purported) ACV payment to [Carr], thereby breaching the terms of [Carr’s] Policy.”
Article Type: LawsuitTopic: Insurance
Most Recent Case Event
Infinity Insurance Total Loss ACV Calculations CA Complaint
January 14, 2022
Infinity Insurance Company offers auto insurance policies. The complaint for this class action alleges that, when a vehicle is totaled, Infinity does not include all required costs in its calculation of the actual cash value (ACV). It claims that Infinity either does not pay or underpays California state sales tax and state-mandated regulatory fees.
Infinity Insurance Total Loss ACV Calculations CA ComplaintCase Event History
Infinity Insurance Total Loss ACV Calculations CA Complaint
January 14, 2022
Infinity Insurance Company offers auto insurance policies. The complaint for this class action alleges that, when a vehicle is totaled, Infinity does not include all required costs in its calculation of the actual cash value (ACV). It claims that Infinity either does not pay or underpays California state sales tax and state-mandated regulatory fees.
Infinity Insurance Total Loss ACV Calculations CA Complaint