Some Massachusetts Drivers Eligible for Refund from State Farm Over Salvaged Autos

October 3, 2005

Massachusetts Attorney General Tom Reilly announced that more than 100 Massachusetts car owners are eligible to receive between $600 and $9,000 in restitution from State Farm Insurance. Reilly said those consumers will be contacted by mail this week.

AG Reilly’s settlement with State Farm follows a multi-state review of the way the national insurer sold automobiles that had been in accidents. In court filings made earlier this year, Massachusetts and other state Attorneys General alleged that State Farm resold damaged cars after they had been in accidents without properly listing them as salvaged vehicles, as required by law.

“These car buyers didn’t get what they paid for,” Reilly said. “Insurance companies must be upfront and honest in their dealings with Massachusetts consumers.”

The settlement also requires State Farm to change its business practices regarding automobile titling and salvage issues, under the terms of the settlement.

Reilly said he is this week sending claim forms by mail to 112 Massachusetts car owners, who must submit their documentation to State Farm’s administrator for processing by Friday, Nov. 18.

Consumers with questions about this case or other insurance matters should contact AG Reilly’s Insurance Hotline at 1-888-830-6277.

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