Auto Insurers Shortchange Consumers in Total Loss Accident Claims

Gluckstein Lawyers and Wagners Law Firm have jointly issued a proposed class action lawsuit against a number of automobile insurance companies for systematically underpaying consumers with total loss accident claims. 

Our lawsuit alleges that these insurers relied on one of two companies—Mitchell International, Inc. and Audatex (also known as Solera)—to provide valuation reports for the Actual Cash Values (“ACVs”) of total loss accident vehicles. These reports included arbitrary and illegal charges that diminished the valuations of total loss vehicles, lowering insurers’ payouts to consumers with total loss accident claims. In the Mitchell reports, these charges were called “Projected Sold Adjustments,” while in the Audatex reports they were called “Typical Negotiation Adjustments.”

Both the “Projected Sold Adjustment” and “Typical Negotiation Adjustment” are based on the flawed theory that used car purchasers typically pay less than a dealer’s advertised sticker price. Our claim therefore seeks damages for people who were charged a “Projected Sold Adjustment,” a “Typical Negotiation Adjustment,” or some other equivalent charge in a total loss claim with an insurer relying on Mitchell or Audatex valuation reports. 

Insurers who rely or relied on Mitchell reports include: 

• Aviva General Insurance Company; 
• Certas Direct Insurance Company; 
• Desjardins General Insurance Services Inc.; 
• Northbridge General Insurance Corporation; 
• Primmum Insurance Company; 
• The Wawanesa Mutual Insurance Company; and
• Security National Insurance Company.

Insurers who rely or relied on Audatex reports include: 

• Aviva General Insurance Company; 
• Economical Insurance; 
• Intact Insurance Company; 
• Manitoba Public Insurance; 
• Travelers Insurance Company of Canada;
• RBC Insurance Agency Ltd.; 
• Axa Insurance (Canada); 
• The Wawanesa Mutual Insurance Company;
• Beneva Insurance Company;
• The Dominion Insurance Corporation; 
• Royal & Sun Alliance Insurance Company of Canada; and
• Jevco Insurance Company.

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