Will the insurance Company pay tax on a total loss claim?

What is the name of your state? Pennsylvania

I was recently in an accident and my car was totaled. I was not at fault and I am waiting to get the settlement check from the other guys insurance company. I wanted to know if the insurance company "Allstate" goes by N.A.D.A. or Blue Book and if they should also pay the 6% PA sales tax on top of the value of the car?

Thanks for the help.What is the name of your state?

Blowchunks said:

What is the name of your state? Pennsylvania

I was recently in an accident and my car was totaled. I was not at fault and I am waiting to get the settlement check from the other guys insurance company. I wanted to know if the insurance company "Allstate" goes by N.A.D.A. or Blue Book and if they should also pay the 6% PA sales tax on top of the value of the car?

Thanks for the help.What is the name of your state?

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No and no.

moburkes said:

No and no.

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Once again you misread a question!

JustAPal00 said:

Once again you misread a question!

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Then answer it for him.

Blowchunks said:

What is the name of your state? Pennsylvania

I was recently in an accident and my car was totaled. I was not at fault and I am waiting to get the settlement check from the other guys insurance company. I wanted to know if the insurance company "Allstate" goes by N.A.D.A. or Blue Book and if they should also pay the 6% PA sales tax on top of the value of the car?

Thanks for the help.What is the name of your state?

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You're first question should be addressed to an Allstate claims adjuster. I do homeowners inspections for them but I know nothing about their auto claims process!

The second question is NO! You paid the sales tax to the state. Good question though! Seems like you get screwed if you buy a car and pay 6% then it gets totaled. Now you need another car and have to pay 6% again. I would contact the state and see if their is some sort of tax credit available. Kind of like when you trade in a car you only pay tax on the difference!

Thanks for the info

Thanks for the info. I was just curious because when I talked to the dealership last night the guy/salesman told me to make sure I get the tax on my claim from the insurance. He said most people don't ask so they don't get it but if you ask for the tax you will get it.

After some looking on the net

After doing some "research" I have found many cases where people have gotten the tax paid on their total loss claims. I see that some have hired there own appraiser and gotten better settlements. I'm not even sure yet what my settlement is yet, but I am seeing a lot of conflicting reports. Are sure they won't pay the tax on claims?

A quote from PEMCO insurance manual

"In most cases, the company will determine a “typical value” based on current
database information (usually no older than 90 days from the date of
loss). Options, condition, and mileage noted on the valuation report result
in additions or subtractions to the “typical value.” That yields an “adjusted
market value.” From there, the company seeks specific comparable vehicles
and gets marketplace quotes from used car dealers.
We then add sales tax, unused license tab fees, and title transfer fees to
come up with the specific market value for your vehicle. We’ll make an
offer to you based on that value. The process usually takes no longer than
five business days, depending on the rarity and uniqueness of your vehicle"

This was straight out of their insurance guide for their insured customers.

Geico

What happens if my vehicle is a total loss?
When a vehicle is considered a total loss, GEICO will:

* Pay the actual cash value of the vehicle* (plus applicable state fees and taxes) less any deductible (see below for details on who we pay and how we determine the value).
* Take ownership of the vehicle. We transfer the title into our name, then sell the vehicle to a salvage buyer (owner may keep the vehicle – see below for details).

*GEICO can only pay your claim if you have the appropriate coverage on your policy. Your claims adjuster will tell you if you do not have the right coverage.

Geico pays TAX too!!!!!

Blowchunks said:

After doing some "research" I have found many cases where people have gotten the tax paid on their total loss claims. I see that some have hired there own appraiser and gotten better settlements. I'm not even sure yet what my settlement is yet, but I am seeing a lot of conflicting reports. Are sure they won't pay the tax on claims?

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There is no law that requires them to, as far as I know.

Curt581 said:

You imply that someone answered a question incorrectly by saying she misread a question... then go on to say you know nothing about Allstate's auto claims process?

How does THAT work?

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Well the question was "Does Allstate use N.A.D.A or Kelly Blue Book to figure value?" Mo’s answer was "No!" It is obvious to anyone with any level of intelligence that Mo either did not read or understand the question! I stated that this was a question for an Allstate adjuster, because I don't know their auto claims process because I am not involved in it! Mo is a "Snipe!" she likes to use what limited knowledge she has to belittle other people. The title of this site is "Free Advice". It is intended for people to ask questions and get helpful answers, maybe even learn something from someone else. Not for some insignificant little house wife to nit-pick peoples ideas!

Blowchunks said:

What is the name of your state? Pennsylvania

I was recently in an accident and my car was totaled. I was not at fault and I am waiting to get the settlement check from the other guys insurance company. I wanted to know if the insurance company "Allstate" goes by N.A.D.A. or Blue Book and if they should also pay the 6% PA sales tax on top of the value of the car?

Thanks for the help.What is the name of your state?

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Let me rephrase my answer.
Q: I wanted to know if the insurance company "Allstate" goes by N.A.D.A. or Blue Book
A:. No. They use neither.

Q: I wanted to know if the insurance company "Allstate" should also pay the 6% PA sales tax on top of the value of the car?
A: Legally, they are not required to, so no.

And, Justa - my knowledge is NOT limited. When I don't know the answer to the question, I attempt to direct the poster to a place where they can GET the answer, while they are waiting on others to respond.

You are correct. My advice is FREE. But it IS, for the most part, accurate, just as the advice given by others is, for the most part, accurate. There is no way on this earth that I would purposely give incorrect information to ANY poster, regardless of what you believe.

You are simply pissed over a previous thread in which I was simply clarifying a statement that you made. Your statement was general, you say that it was not. And, because of that, and another thread where you gave incorrect information, which I corrected, you seem to have a problem.

Thanks, Curt. I appreciate it, and I feel the same about the information that you provide as well.

Curt581 said:

...
And who exactly are YOU to decide who should be allowed to post here and who shouldn't?

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Wow...another self-appointed forum police officer!

I'm pretty confident that if the Site Administrator felt moburkes was violating Terms of Service, or posting advice without factual basis, she would have been banned long before she made 11,000 posts.

Speaking for myself, I've read many many of moburkes' posts. I've found her to be very insightful and well versed in Insurance procedure and law.

Your posts? Not so much.

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Ditto...

I don't know if it's REQUIRED, legally, to add sales tax to a total loss claim, but I know my company does it, and I don't think we would if it wasn't required by law. Insurance companies, as a rule, don't pay out money if they don't have to.

I don't know if Allstate uses NADA, they don't use blue book though, no insurance company (that I'm aware of) does. We use CCC, which takes a survey of actual vehicle sales in a particular area.