Attorneys general from 49 states plus the District of Columbia have signed an agreement with State Farm Insurance that will result in the company's agreeing to compensate consumers who unwittingly bought damaged or salvaged cars.
After titling research is complete, an estimated 30,000 consumers nationwide may be eligible for payments ranging from $400 to more than $10,000, said Tom Miller, Iowa's attorney general, who led the eight-state executive committee of attorneys general who negotiated the settlement. Precise figures will depend on the current average value of each vehicle and the number of consumers who participate in the compensation program. It is estimated that most payments will range from $800 to $1,850.
In all, the settlement will cost State Farm approximately $40 million. State Farm also will pay the expenses for identifying the vehicles, tracing the current owners, contacting owners, taking claims, and making compensation payments.
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