Ohio Consumers File Salvage Suit Against State Farm, Car Dealers

Claims News Service, Jan. 5, 1:42 p.m. EST — Consumers in seven Ohio cities have filed lawsuits against State Farm and local car dealers, claiming that the companies deceived them about salvaged cars they were selling and which the insurance company had totaled out and then resold. The lawsuits claim State Farm illegally resold more than 30,000 totaled cars, in violation of state laws nationwide, between 1997 and 2002.

According to a release from Ronald Burdge, the prosecuting attorney, Maria Loftis bought a 1987 Chevrolet Monte Carlo Super Sport in Ohio last year, which they planned to restore for car shows. However, last September, they got a letter from the state of Ohio that said their car was just “salvage” with a title that was now invalid. They were told they would have to get a new car title issued that would label the car as “rebuilt salvage.” Loftis claims that sometime in 1999, the vehicle was declared a total loss by State Farm. State Farm allegedly retitled the vehicle into its own name and then sold the car to a local used car dealer with a “clean” title that Loftis claims hid the fact that the car had been totaled.