State Farm was recently ordered to pay over $277,000 to a policyholder after they were found to have knowingly or intentionally engaged in unfair and deceptive acts or practices, according to a press release from the Auto Body Association of Texas.
Joseph Collins had his Toyota Tacoma pickup truck damaged by hail in 2020 and had it taken to Burl’s Collision Center in Henderson, Texas.
After the body shop wrote up a repair plan, State Farm declared the vehicle a total loss, but shop owner Burl Richards was skeptical that the cost to repair the vehicle exceeded its total value and encouraged his client to speak with an auto claims adjuster.
Upon evaluation from his adjuster as well as a third-party appraiser hired by State Farm, it was determined that the vehicle was being undervalued.
State Farm took the truck and agreed to pay total loss charges but made several deductions, which reduced Collins’ settlement by $1,750, which prompted Collins to hire an attorney and have his case heard in court.
Ten of 12 jurors found that State Farm had violated its policy agreement in a ruling that will cost the company a total of $277,048.
