Gluckstein Lawyers and Wagners have jointly issued a proposed class action lawsuit against a number of automobile insurance companies for systematically underpaying consumers with total loss accident claims.<\/p>\n
A total loss claim is made when an automobile insurer decides that an accident vehicle is too damaged to repair or is simply not worth repairing. If the insurer finds that an accident vehicle is a total loss, they are required to pay the policyholder the car\u2019s Actual Cash Value (\u201cACV\u201d), meaning the value of the car immediately before the total loss accident. The ACV is determined by looking at prices of similar cars in similar condition to the accident vehicle, also called \u201ccompetitor vehicles.\u201d<\/p>\n
Our lawsuit alleges that these insurers relied on one of two companies\u2014Mitchell International, Inc. and Audatex (also known as Solera)\u2014to provide valuation reports for the Actual Cash Values (\u201cACVs\u201d) of total loss accident vehicles. These reports included arbitrary and illegal charges that diminished the valuations of total loss vehicles, lowering insurers\u2019 payouts to consumers with total loss accident claims. In the Mitchell reports, these charges were called \u201cProjected Sold Adjustments,\u201d while in the Audatex reports they were called \u201cTypical Negotiation Adjustments.\u201d<\/p>\n
Both the \u201cProjected Sold Adjustment\u201d and \u201cTypical Negotiation Adjustment\u201d are based on the flawed theory that used car purchasers typically pay less than a dealer\u2019s advertised sticker price. Our claim therefore seeks damages for people who were charged a \u201cProjected Sold Adjustment,\u201d a \u201cTypical Negotiation Adjustment,\u201d or some other equivalent charge in a total loss claim with an insurer relying on Mitchell or Audatex valuation reports.<\/p>\n