Esurance Accused of Stiffing Customers on Vehicle Sales Taxes

Esurance didn’t cover sales tax paid on vehicles later totaled in violation of its own auto insurance policy, according to a putative class action filed in New York federal court.

Allan Katz, a Staten Island resident, crashed his leased Nissan Maxima in June 2022, for which he received an approved insurance claim from Esurance Property and Casualty Insurance Company. EPC informed him it would pay the vehicle’s actual cash value, plus the sales tax, to the company from which he’d leased the Nissan, the complaint said.

In January 2024, a claims representative admitted to Katz that the sales tax ...