Demagogue

The nation's largest car insurer disclosed Monday that it had mistakenly resold some 30,000 cars, SUVs and trucks without disclosing that they had been in wrecks.

State Farm Insurance also said it would pay $40 million in damages -- once it finds the drivers who bought those vehicles.

... If an appraiser declares that a damaged vehicle is totaled, the insurer gives a check to the owner and takes the car. If the car can be repaired, the insurer sells it to a wholesaler or auctioneer. A damaged car is worth less.

... Nearly every state requires that such vehicles get titles showing that they have been "damaged" or are "salvage." That sounds simple, but State Farm says the problem is that state laws differ on when to declare a car a wreck. The company said it had been aware that it was making some mistakes and decided last year to review its handling of wrecks.