A little secret about auto Total Loss settlements

Here’s a little known secret that could save you big dollars!

Did you know that if your car is totaled, the insurance company can reimburse you for sales tax, transfer and title fees?  If you purchase or lease a car within 30 days of the day your settlement check was issued, you are entitled to reimbursement.  In Illinois, the insurance company is not required to provide the reimbursement in the settlement, but they are required to let you know of this in writing.  However, this information could be hidden in the dozens of documents you would have received.

To get your reimbursement, you should initiate the request with the insurance company and provide your claims adjuster with a copy of the bill of sale.  Keep in mind that if your settlement is, for example $5,000, but your new car is $20,000, your sales tax reimbursement will be based on the $5,000 settlement amount.

For more information on how total loss settlements are handled in Illinois, please visit:

http://insurance.illinois.gov/autoinsurance/total_loss_auto.asp