the Alameda California DA is suing multiple car insurance companies, alleging a conspiracy to create and use software to undervalue “totaled” vehicles and pay customers less than the actual value owed under the policies
The complaint further alleges that the software developers worked with these insurance companies to build the means to lower the reported “actual cash value” of the totaled vehicles and that the modified software is sold exclusively to automobile insurance companies.
After reporting the actual cash value, the insurance companies then allegedly made “lowball” settlement offers to their customers and “refused to negotiate in good faith,” relying on the “independent” software-generated actual cash value, the complaint said.
Once the insured owner accepts the lowball offer, the insurance companies can allegedly resell the same car at auction to minimize its losses further, the complaint said.
The complaint believes the scheme impacts seniors and veterans specifically,
Typical! When I got drafted in '68 my girlfriend who I let drive my 1958 Corvette later with her new boyfriend, stole it and stripped it to the ground. The insurance company tried to hand my mom a check for $800. as I was off playing Army. ACV? It had a 396 and T-10 etc.-etc. Thankfully my mom was no dummy, told them to talk to me. They paid more after I sent them pictures.
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