Star Casualty Insurance Settlement: Class Action Compensation Details
A Florida-based insurer has reached a settlement in a class action lawsuit, agreeing to cover fees related to title, tag transfer, storage, and towing, dating back to 2018.
The case, known as Maxim Kharevich v. Star Casualty Insurance Company, centers on accusations that Star Casualty failed to compensate policyholders for title and tag transfer fees in total loss claims. Additionally, the insurer is alleged to have improperly deducted storage and towing costs from actual cash value settlements. This development marks a significant moment for policyholders as it may be the first settlement of its kind related to storage fee claims, according to Attorney Andrew P. Irvin of Irvin & Irvin PLLC.
Legal Implications and Industry Impact
Star Casualty’s decision to settle, while not admitting any wrongdoing, highlights growing scrutiny over insurer practices regarding claim settlements. Approximately 2,500 policyholders could benefit from reimbursement for unpaid title or tag transfer fees, while about 1,000 might receive compensation for deductions related to towing and storage. The insurer has agreed to reimburse eligible class members up to $79 for these fees and to offset excessive storage and towing deductions, limited to $25 per day for a maximum of eight days, totaling no more than $200. This move underscores the necessity for insurers to ensure clarity and fairness in outlining and settling claims costs.
Requirements for Eligible Claimants
Claimants eligible for compensation must have held a Florida auto insurance policy with Star Casualty from March 22, 2018, to June 26, 2026, and filed first-party loss claims settled on an actual cash value basis without full payment for the implicated fees. Reimbursement claims must be submitted by October 26, 2023. This case sets a precedent suggesting insurers might face increased legal challenges regarding transparent and complete settlement practices, particularly about non-disclosed fee deductions.