Key Takeaways
- Total Loss Vehicle Cases: New Theories and Rulings on Appraisal
- A Couple of Notable Wins for Insurers in Labor Depreciation Cases
- Estimating Class Action Dismissed
- COVID-19 Premium Refund Cases Continue To Falter
- Driving History Data Suits Rev Their Engines
The first quarter of 2025 was filled with the refinement of old theories in the property and casualty space. In the total loss vehicle space, countless cases have challenged the methodology of insurers’ valuation processes. But this quarter, a court considered a specific challenge to the use of a federal tax credit in determining a vehicle’s value. For years, insurers have moved to enforce appraisal provisions to resolve valuation disputes, with varying levels of success. This quarter, the U.S. Court of Appeals for the Second Circuit placed significant constraints on the time for seeking appraisal.
The labor depreciation cases – another well-trodden theory – saw a new challenge that seeks to prevent an insurer from depreciating materials for repair claims. A district court dismissed a case at the pleading stage, and that case has since been appealed to the Sixth Circuit.
Prior quarterly updates reported on a theory challenging the use of a “new construction” setting in Xactimate, a software used to value property claims. This quarter, one court has rejected that theory in a summary judgment motion.
Lastly, a trio of new data cases that challenge insurers’ collection and use of insureds’ driving history cropped up this quarter.
