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Most states require that you have auto insurance on your car, truck, or van.   Most banks require auto insurance before you receive an auto loan.  Depending on the price paid for a used car, you should ask about full coverage insurance prices.  Laws differ from state to state. The sites listed below will help you with the laws in your state and give you free quotes.

State Farm Facing Lawsuit

State Farm Mutual Automobile Insurance Company is facing a lawsuit that was filed against them for unlawfully profiting from rental car payments. The auto insurance company allegedly took rental car payments that actually belonged to their company’s customers.

Stuart Chandler is the lead plaintiff in the case. He says that he was rear ended last March while driving his 2004 Acura. According to his auto insurance policy, he was entitled to a repair while his vehicle was being repaired. He was to pay the 20% that his policy stipulated while the other 80% was picked up by State Farm.

He paid the $63.49 per the agreement, and then State Farm went after the driver that hit him for the rental car amount. They collected 100% of the fees, and should have returned the money that Chandler paid as well – but kept the money instead.

The keeping of the monies by the auto insurance company violated California’s laws which, according to Chandler’s lawyers, states that “when a policyholder suffers a loss from a car accident, the policyholder must be reimbursed for all of his losses before State Farm has a right to reimbursement for any money it paid out under its policy.”





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