In a previous post, I talked about how to figure out what your car is worth if it is a total loss. Now, what happens when your car is a total loss? The insurance company is supposed to get a salvaged title from the DMV. Unfortunately, it does not always happen.
State Farm recently settled a case with the attorneys general for 49 states. State Farm claimed that they had discovered that 30,000 vehicles that should have been declared total losses were sold with clean titles. The problem: people paid for a clean title, but really do not have a clean title.
State Farm says that they have made fair offers. However, some people are not so sure. Thus, there is litigation in Pennsylvania over what State Farm should pay the people who bought these cars.
I think State Farm should be buying these cars for what the people paid. Its the only fair way to compensate people who were defrauded by an insurance company.