A South Florida couple says a minor crash turned into a months-long dispute with State Farm after the insurer declared their vehicle a total loss.
Patricia Haddon and Barry Rebo, both in their 70s, said the dispute began after Rebo crashed his 2007 Lexus SC 430 on Interstate 95 the day after Thanksgiving. The vehicle sustained bumper damage and a punctured tire but was still drivable aside from the flat, they said.
After filing a claim, the couple said they were surprised to be contacted by State Farm’s total loss department and informed the car had been deemed totaled. According to Haddon, they were told repair costs would exceed $12,000 — more than the vehicle’s value.
The couple said they repeatedly requested documentation and a second estimate but felt their concerns were dismissed. Under Florida law, once a vehicle is declared a total loss, the owner must surrender the title within 72 hours unless opting to retain it with a salvage title, which comes with restrictions.
CBS News Miami contacted State Farm about the case. In a statement, a company spokesperson cited customer privacy policies and declined to discuss specifics but said the matter would be reviewed.
Three months after the crash, the couple said State Farm agreed to an independent inspection. That estimate came in at less than $7,000 — significantly lower than the original figure.
Michael DeLong of the Consumer Federation of America said cases involving older vehicles can be particularly challenging. He recommends that policyholders seek independent assessments rather than relying solely on insurer-preferred shops.
DeLong also cautioned that disputing an insurer’s decision can prolong the claims process and may not always result in a favorable outcome.
Consumer advocates say drivers who believe they are being treated unfairly should document all communications and consider filing a complaint with their state’s insurance regulator.