Why are the constant battles brewing over payments for totaled cars so often?
The first salvo in an impending litigation barrage against insurance companies and CCC Information Services has just been fired by a group of 35 law firms.
There were seven law firms that have been filed again. Here they are:
- Allstate Insurance Corp.
- Atlanta Casualty Insurance Co.
- Farmers Insurance Co.
- Guaranty National Insurance Co.
- OrionAuto
- Progressive Insurance co.
- Travelers Property and Casualty Corp.
Many auto insurance consumers tend to believe that the closed world of car-value estimates is complex. Your car will be classified as a total-loss settlement by your insurance company at a certain point, and consumers really shouldn’t be in any form of shock when this happens.
In order to check their car’s cash value, consumers have often turned to the Kelly Blue Book, National Automotive Dealer Association (NADA) guide, or Edmunds.com. All of these sources provide excellent information that the consumers want to find out.
When accident damage exceeds a percentage of your cars actual cash value, your insurer classifies your car as a total loss. There are companies that total cars at 51 percent of their original values, while other companies total them at 80 percent.
However, there is new software formulated by CCC in Chicago that will also help check a car’s value. This software calculates the value of totaled vehicle. Software like these help consumers find the information that they are looking for from a website.
All seven lawsuits allege that the insurers and CCC are unfairly low-balling total-loss settlements for cars that have been in accidents. Unfortunately, attorneys and lawyers claim that more class action lawsuits are sure to follow with other companies.
The goal of CCC’s database is to identify vehicles in the consumer that are comparable to the ones that were wrecked. This software is licensed by insurers, and before making any final evaluations there is a certain amount of information that should be stored in the software.