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State Farm Insurance Salvage Vehicle Deal Can Shortchange Thousands of Consumer Victims

Did you get a letter from the Ohio Attorney General or your state attorney general, telling you that State Farm Insurance Company wanted to give you money?

Salvage vehicle deal by state farm insuranceWas it because your vehicle was totaled out in an insurance claim and they didn’t brand your title as a salvage vehicle?

Watch out! Chances are that you are entitled to get much more compensation than what the state’s deal would get you. You might even be able to get all your money back or a replacement vehicle. In some cases you can even get triple your damages and still keep the car!

In every case you could be driving a dangerous and unsafe motor vehicle so get it checked out by an experienced, competent mechanic or “Wreck Check” shop right away. Don’t drive a dangerous car or a dangerous truck.

To collect the money they are offering (pennies on the dollar and maybe thousands less than you are entitled to) you have to let the insurance company off the hook for its violations of numerous laws that earned it millions of dollars while it violated state title laws across the county.

If you already signed up to take the money, don’t worry because nothing is binding on you until you actually cash their check.

Call us at 1-888-331-6422 or email us today for a Free Salvage Fraud Case Review! Even if you already agreed to take their money, you may still have other legal rights that you don’t know about, so call or email us today to find out.

For about 8 years, an unknown number of motor vehicles have been totaled out by the insurance company with the vehicles later sold to "automotive recyclers" (repair shops, junk yards, rebuilders, etc) with a "clean" title from State Farm Insurance Company. No one knows for sure how many vehicles are involved but it is reported to be over 32,000 salvaged vehicles. In Ohio alone it's nearly a thousand salvage vehicles. Doing that allowed thousands of totalled out cars and trucks to be "rebuilt" and resold without later buyers getting the required notice that the vehicles were actually supposed to be just salvage and parts.

In 1998 the insurance company was caught selling their salvage vehicles with clean titles, got sued by the state of Indiana, and a court order was issued that ordered them not to do it again and also required them to buy back cars for the full amount of the consumer's purchase price. You can read the actual court order by clicking here. (Adobe PDF 295k)

What’s wrong with a salvage car or salvage truck?

car rear clipNo one knows how many salvage vehicles were repaired by incompetent mechanics or crooks just looking to make a fast buck with shoddy and incomplete repairs.

Blown airbags may not have been replaced. Some companies even sell dangerous fake airbag covers that look like the real thing!

Bent vehicle frames may not have been straightened. Damaged parts may not have been replaced or repaired at all.

The front half of the car may not come from the same car as the back half (called a "clipped car" in the business). Mandatory rebuilt vehicle safety inspections may never have taken place at all because the insurance company provided the repair shops with vehicle titles that "hid" the truth about their past record.

Like other government officials across the country, the Ohio Attorney General sent letters to about 500 Ohio consumers in September 2005, telling them that it was a violation of Ohio law for the consumers to sell or transfer their vehicles without getting their titles "branded" with the word "Salvage". In October the Ohio Bureau of Motor Vehicles also sent letters out warning owners that a "block" was put on their vehicle title that would prevent them from selling the vehicle until they paid to have a vehicle inspection done of their former-State-Farm-salvage vehicle and got a branded title issued for it that said "rebuilt salvage car".

What State Farm and the Attorney Generals didn’t tell consumers is the fact that a Salvage vehicle can be worth thousands and thousands of dollars less than one that is not a salvage vehicle. Industry sources report the decrease in value is at least 20% and may be 50% or more, depending on the particular vehicle. "Diminished value" is what it's called and there are experts who can help you figure out how much it amounts to even when the salvage vehicle is repaired properly, let alone when it's not.

Want to know how much less your vehicle is worth as a salvage car or a salvage truck? Here’s an easy way to find out.

Take your vehicle to a new car dealer who sells your kind of vehicle new (take a Ford to a Ford dealer, a Chevy to a Chevy dealer, etc) and ask them what it is worth if you trade it in. Don’t say anything about it being a salvage vehicle. After they give you a number, then tell them that it has a salvage title and ask them what they will give you now. You’ll find out real fast!

Legitimate car dealers simply don’t like salvage vehicles and won’t pay much of anything for one at all — assuming they are willing to buy it at all! Why? Because salvage vehicles can have all sorts of problems that haven’t been fixed and can cost more to fix right than the vehicle might even be worth. Worse yet, the car might look fixed but not really be fixed at all, leading to serious injury or death in an accident. No car dealer wants to be responsible for that!

State Farm Insurance quietly struck a private deal with government officials in 49 states and the District of Columbia to pay a limited amount of money and in exchange the Ohio Attorney General and other state attorney generals agreed not to force the insurance company to pay out even more.

Consumer advocates say consumers will end up being short changed if they take the deal because taking the money (which won’t be paid for months anyway) means they give up all legal rights against the insurance company. These could include title branding and title defect laws and fraud and deceit.

These laws entitle Ohio consumer victims to recover far more than what State Farm Insurance Company is offering in many, many cases. Plus these laws can be used to make the insurance company pay for your legal fees, too!

Not only that, but since hundreds of Ohio consumers have defective car titles and defective truck titles, many consumers also have even more legal rights against the car dealers who sold them their totaled out vehicles!

Don’t be a victim of insurance company greed or car dealer fraud! Don’t go it alone. Call us at 1-888-331-6422 or email us today for a Free Salvage Fraud Case Review!

If you’re a victim owner of a salvage car or salvage truck or other salvage motor vehicle, protect yourself! We can help.

You may be entitled to far more than the insurance company is offering you. You might even be able to get all your money back or a replacement vehicle.

If you paid good money for what you thought was a good car and what you got was ripped off, don’t go it alone!

Call us at 1-888-331-6422 or email us today! Don’t let any car dealer, or any insurance company, make you their victim.

flood truckThe kind of vehicle titles that may have been supposed to be issued on these totaled cars may include:

Dismantled Title - The vehicle sustained major damage to one or more major component parts and the cost of repairing the vehicle for safe operation exceeds its fair market value. When a Dismantled title is issued, the vehicle may be used only for parts or scrap metal. It cannot be re-titled or returned to the road.

Flood Damage Title - States issue flood titles when a vehicle has been in a flood or has received extensive water damage.

Hail Damage Title - The vehicle sustained major damage due to hail. In most states, hail damage titles are issued when the cost of repairing the vehicle for safe operation exceeds its fair market value.

Junk Title - A Junk Title is issued on a vehicle damaged to the extent that the cost of repairing the vehicle for safe operation exceeds its fair market value; or a vehicle that has been declared a Total Loss by an insurer or other state or jurisdiction. Some states treat Junk titles the same as Salvage but the majority use this title to indicate that a vehicle is not road worthy and cannot be titled again in that state.

Loss Due To Fire Title - The vehicle sustained major damage due to fire. In most states, fire damage titles are issued when the cost of repairing the vehicle for safe operation exceeds its fair market value.

Rebuilt/Reconstructed Title - A Rebuilt/Reconstructed vehicle is a salvage vehicle that has been repaired and restored to operation. These vehicles are often severely damaged before they are rebuilt and refurbished parts are typically used during reconstruction. In most states, an inspection of the vehicle is required before the vehicle is allowed to return to the road.

Salvage Title - A Salvage Title is issued on a vehicle damaged to the extent that the cost of repairing the vehicle for safe operation exceeds its fair market value; or a vehicle that has been declared a Total Loss by an insurer or other state or jurisdiction. Some states treat Junk titles the same as Salvage but the majority use this title to indicate that a vehicle is not road worthy and cannot be titled again in that state. The following ten States also use Salvage titles to identify stolen vehicles - AZ, FL, GA, IL, MN, NJ, NM, NY, OK and OR.

If you bought one of these types of vehicles and the dealer didn’t tell you the truth about it before the sale, then call us at 1-888-331-6422 or email us today! Don’t let any car dealer, or any insurance company, make you their victim.

Watch out for frame damaged cars and frame damaged trucks or other frame damaged motor vehicles.

In most cases, a vehicle is inspected for frame damage after an accident or other damage incident. All levels of accidents from minor to severe can cause frame damage and in many cases it can be repaired but not always. Having a vehicle's frame inspected before purchase is highly recommended.

There are ways to tell if that dream car you are looking at is really a disaster waiting to be discovered. Go to framefacts.com for information about frame damage and what it can mean to you and your vehicle.

If you ended up with a vehicle that has frame damage and didn’t know it before you bought it, you might be a victim of fraud.

Call us at 1-888-331-6422 or emai us today! Don’t let any car dealer, or any insurance company, make you their victim.

This page is not associated with State Farm Insurance Company in any way. To read State Farm Insurance Company’s news releases, click here.

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