Jessy Edwards  |  February 8, 2022

Category: Auto News

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Allstate Insurance Logo and Signage.
(Photo Credit: Jonathan Weiss/Shutterstock)

Allstate Auto Premiums Class Action Overview:

  • Who: Allstate Northbrook Indemnity Company is being sued by a car insurance customer.
  • Why: The customer says Allstate has unfairly profited from the pandemic by overcharging on premiums even though not as many people were driving.
  • Where: The class action was filed in a California federal court.

Allstate unfairly profited from the global COVID-19 pandemic through its exorbitant car insurance premiums, one customer claims in a new class action lawsuit.

Plaintiff Minerva Chavez filed the class action lawsuit against Allstate Northbrook Indemnity Company Feb. 4 in a California federal court, alleging breach of contract, unjust enrichment and violation of California business laws.

According to the complaint, while many companies and individuals have suffered financially as a result of the COVID-19 pandemic, auto insurers like Allstate have “scored a windfall.” 

As a result of statewide social distancing and stay-at-home measures, Chavez says there has been a dramatic reduction in driving, and an attendant reduction in driving-related accidents. 

“This decrease in driving and accidents has significantly reduced the number of claims that auto insurers like Allstate have paid, resulting in a drastic and unfair increase in Allstate’s profits at the expense of its customers,” she alleges.

While Allstate made some moves to compensate customers with refunds, it did not go nearly far enough, Chavez says.

At least a 30% Average Refund of Premiums Would Make Up For Excess Amounts Consumers Paid

According to one conservative report, at least a 30% average refund of paid premiums would be required to make up for the excess amounts paid by consumers for the period between mid-March and the end of April of 2020, Chavez says.

However, the company’s credit program applied only a 15% premium credit for the months of March, April and May 2020, she says. 

“And although the company reports that it offered additional, even smaller refunds in 2020 and 2021, these amounts were still insufficient,” the lawsuit states. “Despite full knowledge of these facts, Allstate continued to charge and collect excessive premiums throughout 2020 and 2021 and has failed to issue adequate refunds.”

Chavez is seeking disgorgement of the alleged ill-gotten gains obtained by Allstate, all available damages, punitive damages, declaratory and injunctive relief, fees, costs and a jury trial.

She’s looking to represent all California residents who purchased personal auto insurance from Allstate covering any portion of the time period from March 1, 2020 to now.

Meanwhile, in January, insurance giant Geico had a partial win in court after it was alleged in 2021 that the company did not “Giveback” to customers as promised and unfairly profited off the COVID-19 pandemic.

Did you get an adequate refund from your auto insurer for pandemic premiums? Let us know in the comments! 

The plaintiff is represented by Robert L. Schug, Chloe A. Raimey and Matthew H. Morgan of Nicholas Kaster, PLLP, and Manfred Muecke of Manfred APC.

The Allstate Breach of Contract Class Action Lawsuit is Minerva Chavez v. Allstate Northbrook Indemnity Company, Case No. 3:22-cv-00166-AJB-AHG, in the U.S. District Court Southern District of California. 


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43 thoughts onAllstate Class Action Claims Insurer Unfairly Profited From Pandemic With Its Auto Insurance Premiums

  1. Tina says:

    My insurance tripled this last renewal. I don’t understand how Allstate can get away with this.
    Ii been with Allstate 30 years with no accidents, and no points, but my insurance has tripled for some reason.

  2. Kila Brooks says:

    I had so many problems with Allstate since 2021. Overcharge people. Once they saw I had a lot of medical supplies for my son. They cancel my policy. Also, they sent me 5 reasons why my insurance was canceled all of these were my personal life. Add me

    1. Kila Brooks says:

      Also, I had to call the agent about a refund doing covid. They sent me to
      a credit agency. I never owe them any money when they cancel my account. Nationwide need to be investigated too. Please add me

      1. KILA M BROOKS says:

        Please add me

  3. Debra L. Pinkham says:

    Please include me!

  4. Robbin McHood says:

    Driving less, ordering on line, being on lock down all huge reasons for a larger refund during Covid.
    Rates are now increasing due to increased prices but… no refund for driving less during Covid,
    Please include me!

  5. Tiffany Sheffield says:

    Allstate is a joke… My rates went up every single renewal. I cancelled my policy a week ago and they are still trying to bill me. I don’t understand why my rates went up everytime when I have had zero accidents, safe driving, and barely ever drive. It’s rediculous

  6. Janette Lee KOEPKE says:

    I drive only a miles a month. I pay way to much and I never got any money ever and they only gave me Two discounts in over 8 year’s.
    Add me please

  7. Sheila M cooperman says:

    how do you submit to be added to the class action law suit

  8. Sandra Armes says:

    Allstate charges me soo much for auto& home! No accidents, no tickets nothing ! I believe they are ripping me off

  9. Dawn De Leon says:

    Add me pls !!!

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