Does the driver's insurance company also owe me tax

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PostPosted: Sat Nov 10, 2007 12:43 am   Post subject: Sales Tax?  

"Ps don't forget (dependent upon your state), you are owed sales tax."



I was rear ended by a negligent driver 4 weeks ago and my 2007 vehicle was totaled.

The other driver's insurance company used the services of "CCC" to determine the Actual Cash Value of my vehicle.

However, the paperwork the insurance company has sent me to sign clearly states therein that the Actual Cash Value "does not include tax, title, or license."

I live in North Carolina, does the driver's insurance company also owe me tax in addition to the Actual Cash Value?



Also, I had a few after market accessories installed (such as a chrome luggage rack, etc). Should I also ask to be compensated for those add on accessories?



Any and all replies or help would be greatly appreciated.

Thanks in advance.



Regards,

-Ward


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Ward
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PostPosted: Sat Nov 10, 2007 8:24 am   Post subject:   

My experience says that the insurance company pays for the taxes along with the ACV of the car. It is applicable to almost all the states. You may get it clarified by the adjuster of the other party's insurance company.


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PostPosted: Sat Nov 10, 2007 8:39 am   Post subject:   

Right, you owe to the insurance company the ACV plus the sales tax and other taxes. The insurance company has taken the service of CCC Inc. to determine the actual cash value of the car. CCC normally performs a market survey in your vicinity to decide upon the amount to be paid for it.



Any value addition to the car, like, the introduction of upgrade wheels or power roof will increase the actual cash value of the car. And, on the other hand, wear and tear factors will reduce its value. You need to make certain that all these factors were taken care of while deciding about the quote.


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jukebox07
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PostPosted: Sat Nov 10, 2007 9:43 am   Post subject: Title of the car gets shifted to the insurance company...  

Goodmorning Wade, if I know it correctly, once the car is declared ‘totaled' the title of the car gets shifted to the insurance company and it no longer exists with the original owner. Therefore, you no longer have to pay for the title.



Hope the input helps.


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teentwine
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PostPosted: Sat Nov 10, 2007 10:28 am   Post subject:   

Good morning Wade and welcome to the community,



That first line in your post looks like something from one of my prior posts maybe.



Sorry you've had an accident, and glad no serious injuries resulted.



First, CCC is used by many insurance companies I've used it with companies I worked for too, and it's an acturate (generally) evaluation, and typcially comes in alittle higher than say Edmunds or NADA dependant upon the vehicle and location or zipcode used. Be sure and point out to the adjuster any aftermarket add ons. Some will add value some will not. Also be sure you go over the options etc closely to be certain the adjuster didn't miss any. We are human and can miss things, adjusters do want to give you the fair value of your vehicle.



As to the sales tax. Yes the totaling insurance company will owe you the sales tax on the ACV of your vehicle. I do not know how your state handles that. Many states just pay it directly to the owner, usually including sale tax and title or transfer fees with the ACV. Others including the state I am in (MO) are mandated to issue a 'sales tax affidavit' or credit. It's a notoraized paper that is good for six months that states the amount. After you purchase your replacement vehicle you take this paper to the DMV when you license it, and you don't pay sales tax on that amount. Here's the terribly unfair part of it (in my state anyway), if you don't replace that vehicle within the six months, your money (sales tax) is gone! Yep, state just gets to keep it! I think that's a crock but I'm not the govenor so there you go! Laughing



Let us know if we can be of any further assistance, just ask your adjuster, hey, how are you going to pay me for my sales tax? And remember to bring up any 'additions' you think may increase your vehicles value......

Lori
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Lori
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