does insurance pay tax on totaled car?

Originally Posted by Pharmacist

a while back I posted about the accident i had with the z. so now its official, the car is totaled. i got the update from the insurance yesterday. my question, for those in the know, would the insurance pay me the 13% tax on top of whatever value they determine the car to be worth? since the car is totaled, i can theoretically replace it with an equivalent car in the same price point using the money from the insurance that i will get, lets say market value of the car. but in reality, the acutal price of the equivalent car would be above the market value by about 13% due to greedy government tax. so therefore my choices are either to pay tax out of pocket or to downgrade to a cheaper car and use the left over money to pay the tax. but that would mean the insurance is not really fulfilling their obligation to put me in an equivalent car in the case of a total loss.