State Farm Sued over Salvaged Car Settlement

When State Farm Mutual Insurance Co. agreed to pay $40 million to tens of thousands of car owners to settle allegations that it allowed salvaged automobiles to be resold without appropriate titles, the insurer was lauded for being forthright.



But a lawsuit claims State Farm crafted a sweetheart deal with attorneys general for 49 states, including Pennsylvania, under which it will pay a fraction of what car buyers are out. Robert G. Beaves, 51, of Sewickley, said he is being offered up to $2,700 for a Honda Civic he bought 2 1/2 years ago for more than $14,000.

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