A class action lawsuit has been filed against Allstate subsidiary, SafeAuto, over unpaid taxes and fees on total loss vehicles in Kansas.

According to the complaint shared by Law.com, the actual cash value (ACV) of an insured vehicle includes all sales tax, calculated on the underlying or base value of the vehicle, and regulatory fees including purchasing fees.

Kansas law defines ACV as the actual cost minus any deductible to purchase a comparable vehicle including all applicable taxes, license fees, and other fees required to transfer ownership, according to Kan. Admin. Regs. 40-1-34 (9)(a)(2).

“To replace a car in Kansas, an insured is required to pay sales tax and other mandatory fees such as title, registration, and tag fees (Purchasing Fees) necessary to properly obtain ownership of and to operate a motor vehicle,” the complaint states. “Those costs are included in the actual cost to buy another vehicle. Kan. Stat. Ann. § 8-127; Kan. Admin. Regs. 40-1-34 (9)(a)(2); Kan. Stat.Ann. § 8-153.”

SafeAuto allegedly failed to do so, breaching its contract with plaintiff Dawn Berruecos and violating state law, the complaint states.

Berruecos was involved in a collision in her 2015 Ford Mustang in 2021. She was paid $18,903 based on a CCC Intelligent Solutions market valuation report.

Class certification of the case is sought for Kansas residents who made first-party property damage claims under Safe Auto private-passenger auto physical damage coverage, for comprehensive or collision loss, and the claim was determined to be a total loss. The timeframe for qualifying members is the earliest allowable date through the date of the class certification order, according to the complaint. The class is estimated to include over 100 members.

Relief sought includes:

• • Compensatory damages to Berruecos and all putative class members in the amount of 100% of the purchasing fees that SafeAuto failed to pay;
  • Attorney’s fees and expenses; and
  • Pre- and post-judgment interest at the maximum rate permitted by applicable law.

The U.S. Department of Justice recently filed a civil complaint against National General Holdings Corp., another Allstate company, and its subsidiaries for allegedly erroneously force-placing collateral protection insurance (CPI) on vehicles financed through Wells Fargo.

The complaint alleges that the company required CPI on at least 655,000 vehicles that already had outside insurance.

SafeAuto’s parent company, Allstate, was also recently fined by the Washington Office of the Insurance Commission (OIC) for the mishandling of an auto insurance claim, according to a consent order signed by Insurance Commissioner Mike Kreidler.

OIC said the $25,000 fine comes after a consumer complained they received a low estimate from Allstate. The insurance company also incorrectly stated that a right to appraisal could not be invoked after repairs had been made, failing to conduct the appraisal in a timely manner.

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