Chris asked:
I recently totaled my Lexus LX470 (other driver at fault) and am waiting for insurance to check out the vehicle (not declared totaled yet, but very clear that it is). My car had an agreed upon value of $26,000 and I am going to soon buy a new car. When I purchase the new car, will I have to pay sales tax, title fees, etc? Is the sales tax that I have to pay assumed to be included in my $26000 settlement or will I have to later seek reimbursement for my title, tax, and licensing? I live in Pennsylvania, insurance is Chubb.
Thanks in advance,
Chris
I recently totaled my Lexus LX470 (other driver at fault) and am waiting for insurance to check out the vehicle (not declared totaled yet, but very clear that it is). My car had an agreed upon value of $26,000 and I am going to soon buy a new car. When I purchase the new car, will I have to pay sales tax, title fees, etc? Is the sales tax that I have to pay assumed to be included in my $26000 settlement or will I have to later seek reimbursement for my title, tax, and licensing? I live in Pennsylvania, insurance is Chubb.
Thanks in advance,
Chris
if 26000 is what the insurance will give you for your wrecked car then that’s the end of it. any costs associated with buying a new car is your problem
Yes you will have to pay every fee and tax. The $26000 you got included title fees and taxes?
Your settlement is to compensate you for the loss of your old car, not to buy a new one. When you buy a new car, you’ll pay tag, titles, tax (details depend on state) as usual.
Of course you will pay sales tax on the new vehicle. The state charging sales tax has nothing to do with an insurance company.
You can ask your adjuster about tax/tag/title on the new vehicle. Depending on the laws of your state, they may give you something for that.
My insurance company included sales tax of the replacement vehicle in my settlement.