(USA Herald) – State Farm, one of the largest insurance companies in the United States, is facing yet another class action lawsuit for allegedly failing to pay for the proper and necessary collision repairs of its insureds’ high-value, luxury automobiles. The lawsuit, filed in Broward County, Florida on May 18, accuses State Farm of engaging in a “systemic and wrongful practice” of refusing to pay appropriate hourly labor rates for high-value luxury vehicles.
The case was filed after Ada Sasson, whose all-electric 2022 Porche Taycan was insured with State Farm for more than $100,000, sustained damage in a May 27, 2022 collision. Sasson brought her vehicle to a Porche dealership, where she was referred to a local Porche-certified collision shop for repairs. The body shop created an estimate of repairs for $8,360.87, but it was rejected by State Farm.
State Farm’s Alleged Misconduct
According to the lawsuit, State Farm created its own estimate of damages to the insured vehicle in the amount of $6,267.03 and offered to pay only that amount for repair to the vehicle, less a $500 deductible. The plaintiffs did not approve or agree to the amount of State Farm’s estimate and State Farm did not approve the repair estimate provided by the plaintiffs from Stuttgart International.
The lawsuit alleges that State Farm made it part of their business model to deny necessary collision benefits by refusing to pay appropriate hourly labor rates for high-value luxury vehicles. This practice is in violation of policy terms and has resulted in many policyholders being forced to pay out-of-pocket for necessary repairs.
Implications for State Farm Policyholders
This case has significant implications for State Farm policyholders, particularly those who own high-value luxury vehicles. If the allegations are proven true, it could mean that many policyholders have been denied necessary collision benefits and have been forced to pay out-of-pocket for repairs that should have been covered by their insurance policies.
It is important for State Farm policyholders to carefully review their policies and understand their rights and obligations. If you believe that you have been denied necessary collision benefits or have been forced to pay out-of-pocket for repairs that should have been covered by your insurance policy, it may be worth consulting with an attorney to discuss your options.
Has State Farm Engaged in This Type of Behavior in the Past?
It is unclear at this time whether State Farm has engaged in this type of behavior in the past. However, the plaintiff’s lawyers claim that during discovery they found that State Farm has been “utilizing a consistent, yet non-compliant company practice for the determination of collision benefits on high value vehicles which fails to honor the requirements of the State Farm auto policy.”
How Can State Farm Insurance Policyholders Protect Themselves?
State Farm insurance policyholders can protect themselves by carefully reviewing their policies and understanding their rights and obligations. If you believe that you have been denied necessary collision benefits or have been forced to pay out-of-pocket for repairs that should have been covered by your insurance policy, it may be worth consulting with an attorney to discuss your options.
The class action lawsuit against State Farm raises serious questions about the insurer’s business practices and its treatment of policyholders who own high-value luxury vehicles. It is important for all policyholders to carefully review their policies and understand their rights and obligations.
By Samuel Lopez | Legal News Contributor for USA Herald
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