Settlement Ensures Refund to 'Total Loss' Vehicle Purchasers
A settlement has been signed with State Farm Mutual Insurance Co. ensuring refunds for consumers who unwittingly purchased vehicles labeled "total losses" by insurers, but were not branded as such, AutoRemarketing.com reported.The state attorney’s general from Texas, Illinois, California, New York, Nebraska, Iowa and South Carolina signed the agreement after State Farm voluntarily notified Texas Attorney General Greg Abbott of the problem.As part of the agreement, State Farm will compensate $400 to $20,000 for such vehicles, which the company did not give salvage titles that are required by law. Consumers will receive notice in the mail this month with a form to fill out in order collect the reimbursement, the news magazine reported. Abbot told Auto Remarketing that he anticipates $10 million in refunds to Texans. It is estimated that about 25 percent of consumers affected are from Texas.