State Farm Mutual Total Loss Transfer Fees Delaware Class Action

Recent class actions have raised the question of what the actual cash value (ACV) for a totaled vehicle should include. This one contends that State Farm Mutual Automobile Insurance Company should include transfer fees in its ACV payments. The transfer fees, it claims, include a tag fee, a document fee, and a title fee, because these are all required when buying a vehicle and putting it into operation in the state of Delaware.

The class for this action is all those insured under a Delaware policy issued by State Farm Mutual Automobile Company and its subsidiaries who turned in a first-party claim for property damage for an insured vehicle that was deemed a total loss, between October 23, 2017 and the date of class certification in this case, who were not paid the full transfer fees in the total-loss claim payout.

Plaintiff Rosilyn Wilson owned a 2005 GMC Envoy that she insured with State Farm Mutual. In November 2018, the car was involved in an accident. Because State Farm Mutual estimated that the cost to repair the vehicle was more than the vehicle’s ACV, it declared the vehicle a total loss.

The company determined that the vehicle’s “adjusted value” was $5,177. The complaint alleges, “[State Farm Mutual] added $35.00 but notably only paid the $35.00 fee to acquire Title without Lien of $35.00 and failed to include mandatory license fees.”

Among these fees, the complaint claims, is the “tag fee” of $20, which pays to transfer the registration to the replacement vehicle.

In addition, the complaint quotes Delaware law as saying, “There is imposed upon the sale, transfer or registration of any new or used motor vehicle, truck, tractor, trailer or motorcycle in this State a motor vehicle document fee, which fee is to be paid by the owner and shall be collected by the Division of Motor Vehicles for deposit to the credit of the Transportation Trust Fund.”

This document fee is 4.25% of purchase price or NADA book value, whichever is greater, with a minimum of $8. The document fee for plaintiff Wilson’s vehicle, calculated from its adjusted vehicle value, is $220.02.

Title fees may be with or without lien. As noted, the $35 paid was the fee for a vehicle without lien; for one with a lien, it’s $55.

The complaint concludes, “Transfer Fees are mandatory, applicable fees that must be paid to purchase any vehicle in the State of Delaware.”

Article Type: Lawsuit
Topic: Insurance

Most Recent Case Event

State Farm Mutual Total Loss Transfer Fees Delaware Complaint

October 23, 2020

Recent class actions have raised the question of what the actual cash value (ACV) for a totaled vehicle should include. This one contends that State Farm Mutual Automobile Insurance Company should include transfer fees in its ACV payments. The transfer fees, it claims, include a tag fee, a document fee, and a title fee, because these are all required when buying a vehicle and putting it into operation in the state of Delaware.

State Farm Mutual Total Loss Transfer Fees Delaware Complaint

Case Event History

State Farm Mutual Total Loss Transfer Fees Delaware Complaint

October 23, 2020

Recent class actions have raised the question of what the actual cash value (ACV) for a totaled vehicle should include. This one contends that State Farm Mutual Automobile Insurance Company should include transfer fees in its ACV payments. The transfer fees, it claims, include a tag fee, a document fee, and a title fee, because these are all required when buying a vehicle and putting it into operation in the state of Delaware.

State Farm Mutual Total Loss Transfer Fees Delaware Complaint
Tags: Actual Cash Value, Auto Insurance, Incomplete payment of benefits due, Insurance