by Guest » Sat Aug 08, 2009 07:56 pm
I was given the settlement offer on my total loss recently and the amount included money for title and registration. However, that amount was substantially less than what I paid. I asked the insurance agent how they arrived at their figure and was told "The fees are what the state tells us we owe on a total loss vehicle." How does the state come up with the figure?
Posted: Sat Aug 08, 2009 08:26 pm Post Subject:
Registrations fees should be the same for a new vehicle or old vehicle. The amount of sales tax fees owed would be on the amount of sales tax assessed a vehicle's value at the time of the loss and not when purchased. In some states as Missouri, you only get a credit for sales tax to be used if you purchase a vehicle within 180 days of the total loss. I have yet to see anyone get paid in Missouri for title and registration fees even though I believe it is owed. It is possible some states assess different fees in different ways that I am not aware of. Some states may credit state sales tax and not county or city tax.
Posted: Sun Aug 09, 2009 05:00 pm Post Subject:
How does the state come up with the figure...? It's probably voted on and then put into place. State title and registration fees are basically taxes. They are set just like any other tax is set.
If you think the amounts paid were incorrect you can simply call the DMV and ask them what the fees are. If they are different, you can call the adjuster back and inform.
Perhaps your initial fees were higher as the place you bought the car from charged more. They do this as they spend their time to get the vehicle registered so they may add a little "something, something" for their time.
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