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Mid-Century Insurance Total-Loss Payout Georgia TAVT Class Action

When a vehicle is totaled in an accident, what expenses required to replace it must the insurance company pay? The complaint for this class action alleges that Mid-Century Insurance Company does not include the motor vehicle title ad valorem tax (TAVT), which it says replaced Georgia’s mandatory vehicle sales tax on March 1, 2013.

The class for this action is all insureds under a Georgia policy issued by Mid-Century who submitted a covered, first-party physical damage claim, where the vehicle was deemed a total loss, and who received a total-loss payout from Mid-Century that did not include the full amount of TAVT due, between March 1, 2013 and December 31, 2019.

The plaintiff in this case, Jamie-Denise Tyler, had a 2011 Hyundai Sonata with she insured with Mid-Century. In March of 2019, she was involved in an accident, and Mid-Century declared the vehicle a total loss.

Mid-Century’s valuation provider valued the vehicle at $4,939. After adjustments, the valuation was decreased to $4,896. This amount is not in dispute.

Mid-Century then added $38 for fees and $342.72 for TAVT. After subtracting Tyler’s $1,000 deductible, Mid-Century’s calculated total payout was $4,276.72.”

The complaint alleges that this amount is incorrect. It alleges, “For the period March 1, 2013 through December 31, 2019, TAVT was determined by applying the TAVT percentage rate to the fair market value of the vehicle set as of the day of purchase by the Georgia Motor Vehicle Assessment Manual for Title Ad Valorem Tax.”

Mid-Century based its calculation for TAVT on the appraisal amount, the complaint alleges, which is not correct: “The fair market value of the total loss vehicle for purposes of TAVT is not subject to appraisal because it is a set amount determined by the manual that only relates to the TAVT due on the claim.”

The complaint alleges, “The minimum TAVT due on the vehicle is thus easy to identify: (1) find the vehicle value listed in the TAVT Manual; (2) apply the percentage TAVT to the value.”

The complaint claims that the 2019 TAVT Manual valued the Sonata at $5,650 for TAVT purposes; the percentage for calculating TAVT for 2019 was 7%. Thus, the complaint alleges that Mid-Century should have paid Tyler $395.50 for TAVT.

Georgia law requires, the complaint says, that when insurers pay money for a total loss (rather than providing a replacement vehicle), they must include in the amount “all applicable taxes, license fees and other fees incident to the transfer of ownership of a comparable automobile. The amount payable on taxes, license fees, and transfer fees shall be limited to the amount that would have been paid on the totaled, insured vehicle at the time of settlement.”

Article Type: Lawsuit
Topic: Insurance

Most Recent Case Event

Mid-Century Insurance Total-Loss Payout Georgia TAVT Complaint

November 1, 2021

When a vehicle is totaled in an accident, what expenses required to replace it must the insurance company pay? The complaint for this class action alleges that Mid-Century Insurance Company does not include the motor vehicle title ad valorem tax (TAVT), which it says replaced Georgia’s mandatory vehicle sales tax on March 1, 2013.

Mid-Century Insurance Total-Loss Payout Georgia TAVT Complaint

Case Event History

Mid-Century Insurance Total-Loss Payout Georgia TAVT Complaint

November 1, 2021

When a vehicle is totaled in an accident, what expenses required to replace it must the insurance company pay? The complaint for this class action alleges that Mid-Century Insurance Company does not include the motor vehicle title ad valorem tax (TAVT), which it says replaced Georgia’s mandatory vehicle sales tax on March 1, 2013.

Mid-Century Insurance Total-Loss Payout Georgia TAVT Complaint
Tags: Auto Insurance, Incomplete payment of benefits due, Insurance