Does FL require that sales tax be paid as part of a total loss settlement on a vehicle?
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UPDATED: Jan 26, 2016
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Insurance Question from Venice, FL
Asked on 01/26/2016
Does FL require that sales tax be paid as part of a total loss settlement on a vehicle? Using my insurance for the total loss of my vehicle since at fault drivers policy was far less than the damage done to all vehicles involved. Does FL require sales tax to be paid as part of a total loss settlement? When I asked my claim agent she flat out said no yet I've read otherwise online & have already caught her making a big mistake that would have cost me so I can't trust her.
Answer given on January 26, 2016
If a car is totaled in an auto accident, the value of the car is based on the actual cash value of the car at the time of loss. This would normally include the sales tax for that actual cash value.Each auto insurance company handles claims differently and it is always better to check with your agent, adjuster or review the policy itself. If you still are not certain, contact the Dept of Insurance in your state to see what they say about the sales tax.If the responsible party does not have sufficient insurance coverage to pay for all damages, the insurance company will most likely prorate the amount paid to the amount of coverage. If you have uninsured/underinsured motorist coverage for property damage, you could collect additional funds under that portion of your insurance policy for the difference between what you received and what the actual cash value of the car was. There is usually no deductible on this coverage.
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