Total Loss Undervaluation Lawsuit Filed Against State Farm in North Carolina
A North Carolina State Farm policyholder has filed a class action lawsuit against the insurance company, alleging undervaluation of total loss claims.
Similar complaints have been filed in six other states. The lawsuit, brought by plaintiff Craig Brewer, claims that State Farm reduced the retail cost of comparable vehicles, resulting in lower total loss payouts.
In Brewer's case, the reduction was 5.5%. The suit alleges that for each class member, the reduction was between 4-9%.
[T]he plaintiff only contests State Farm’s blanket reduction of the retail cost of comparable vehicles on behalf of himself and the class.
Therefore, the suit states that none of the total loss vehicles need to be revalued.
Author summary: Lawsuit filed against State Farm over alleged undervaluation.
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