Car Insurance Claims - Does Your Insurer Owe You Sales Tax?

More than half of the states in the USA require thatyour car is worth its absolute highest value.
the insurance company pay state sales tax whenState sales tax percentages vary widely from state
you replace your total loss vehicle. What thoseto state. Here in Georgia, the tax is calculated on a
states do not mandate is that the insurancecounty-by-county basis. In Cobb County, where I live,
company has to tell you about the tax issue. Youthe tax is 5%. However, just across the county line
probably won't get the sales tax unless you ask forin Fulton County, the tax is 7%. But in the City of
it.Atlanta, the tax is 8%.
To find out if your state requires the extra sales taxLook at the numbers on a $30,000 automobile. If you
payment, contact your state's Department oflived in Cobb County at 5%, the insurance company
Insurance.would owe you an additional $1,500.00. If you lived in
No insurance company, whether it is your insurer, orAtlanta at 8%, the amount would be $2,400.00.
another insurer who insures an at-fault driver, wantsIf you do not demand the extra sales tax payment,
to pay you one dollar more than the lowest Actualyou're leaving thousands of dollars on the table that
Cash Value (ACV) that they can find. When theyou are likely entitled to collect.
insurance company declares your car a total loss isDon't allow the insurance companies to mislead you.
when the strenuous negotiations begin.The Actual Cash Value of the car must include the
Your mission...should you accept it...is to prove thatstate sales tax.