Auto Insurance Claims: Sales Tax Treatment for Total Auto Loss, kia sorrento, auto accident


Question
Hello,
I was involved in an auto accident and it was deemed a total loss.  It was a 2011 Kia Sorrento, which is worth about $28,000 today according to the Ins. company.  I was wondering how sales tax on a new 2013 Kia Sorrento would work. Am I able to get any relief from paying full sales tax on the new auto?  It seems reasonable for me to pay sales tax on the difference between a new Sorrento versus my wrecked one (say $35,000 - $28,000) , or $7,000.  To pay full sales tax of $2,500+ seems unfair.  Any thoughts on this?  Thanks

Answer
The insurer should include sales tax in the settlement of you damaged auto.  It will be based on the value they settle for (roughly 28k).  When you buy the new car, the insurer will not be involved, but you will owe full sales tax to the state.

If they have not included sales tax in your settlement offer, you should request it.