(Washington, DC) -- Attorney General Robert J. Spagnoletti said today that the District of Columbia and 49 states have reached an innovative agreement with State Farm Mutual Insurance Company which will result in $40 million in compensation to thousands of car, SUV, and truck owners nationwide.

After titling research is complete, an estimated 30,000 consumers nationwide may be eligible for payments ranging from about $400 to $20,000, depending on the current average value of their vehicle, and the number of consumers who participate in the compensation program. Mr. Spagnoletti believes most payments are likely to range from $800 to $1850.

Mr. Spagnoletti said the agreement resulted after State Farm approached states attorneys general and indicated that, after an internal review, in a small percentage of cases it was unable to confirm that it had properly titled vehicles of which it had taken ownership from policyholders due to damage or theft.

In an effort to ensure that residents of the District of Columbia are protected, the DC Council passed the "Department of Motor Vehicles Reform Amendment Act of 2004," which will require a vehicle owner to apply for a salvage vehicle title if damage to the vehicle exceeds 75 percent of the retail value. The Act is scheduled to become law and go into effect early this year. The new law should save money for District residents when they purchase used cars. "I am pleased that the Council has acted to provide DC with the same salvage title requirements that protect consumers in most states," Mr. Spagnoletti said. "Although DC's new salvage title law has not yet become effective, the multi-state settlement provides compensation to DC consumers whose vehicles were not correctly titled as 'salvage' under state laws."