fbpx

Safeco Insurance of Illinois Sales Tax on Total Losses Missouri Class Action

When an insurance company must pay for a vehicle that is a total loss from an accident or that has been stolen, what items must be figured into the payout? The complaint for this class action alleges that Safeco Insurance Company of Illinois is required to pay sales tax as part of the payment for losses but that it does not do so.

The class for this action is all Missouri insureds with a policy issued by Safeco for a vehicle with private-passenger auto physical damage coverage for comprehensive or collision loss who, within the applicable statute of limitations before this lawsuit’s filing on April 30, 2021 and the date the class is certified, put in a first-party property damage claim determined by Safeco to constitute a covered loss claim and where the payment did not include sales tax.

Plaintiff Ross Mouber insured his 2013 Kia Sportage EX AWD with Safeco. When the vehicle suffered loss or damage on August 11, 2019, it was deemed to be a total loss.

Safeco found the base vehicle value to be $13,319, and the adjusted vehicle value $13,265. It uses a third-party vendor, CCC, to calculate and adjust these values. CCC also calculated the sales tax on the vehicle as $1,140.79.

According to the complaint, Mouber had a form policy identical to what others with the same policy had. The complaint alleges, “In its standardized Policy, [Safeco] promises to pay for ‘direct and accidental loss’ to a covered auto.” It also quotes Safeco as saying that “[i]f we pay for loss in money, our payment will include the applicable sales tax for the damaged or stolen property.”

However, in this instance, the complaint says, instead of paying the already-calculated sales tax, “Safeco removed sales tax when making payment.” Safeco paid the adjusted vehicle value minus the policy deductible of $1,000—a total of $12,265. The complaint alleges, “By failing to include sales tax in making payment for the loss, Safeco breached its contract with [Mouber].”

“Nothing in the Policy unambiguously excludes sales tax or contradicts [Safeco’s] promise to pay sales tax where it pays for the loss in money[,]” the complaint claims. “To the extent the applicable limitation or liability is the vehicle’s actual cash value, such limitation does not operate to exclude or subvert [Safeco’s] explicit and unambiguous promise to include payment for sales tax in its loss payments.”

The sole count in the complaint is breach of contract.

Article Type: Lawsuit
Topic: Insurance

Most Recent Case Event

Safeco Insurance of Illinois Sales Tax on Total Losses Missouri Complaint

April 30, 2021

When an insurance company must pay for a vehicle that is a total loss from an accident or that has been stolen, what items must be figured into the payout? The complaint for this class action alleges that Safeco Insurance Company of Illinois is required to pay sales tax as part of the payment for losses but that it does not do so.

Safeco Insurance of Illinois Sales Tax on Total Losses Missouri Complaint

Case Event History

Safeco Insurance of Illinois Sales Tax on Total Losses Missouri Complaint

April 30, 2021

When an insurance company must pay for a vehicle that is a total loss from an accident or that has been stolen, what items must be figured into the payout? The complaint for this class action alleges that Safeco Insurance Company of Illinois is required to pay sales tax as part of the payment for losses but that it does not do so.

Safeco Insurance of Illinois Sales Tax on Total Losses Missouri Complaint
Tags: Actual Cash Value, Auto Insurance, Incomplete payment of benefits due, Insurance, Sales Tax