Emily Sortor  |  August 6, 2020

Category: Covid-19

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Allstate car insurance customers and other companies' customers argue that their premiums should be reduced further in light of COVID-19.

Allstate, Progressive, American Family Insurance, Geico, Erie Insurance, and The Travelers Company are all facing separate class action lawsuits in Illinois court. Consumers say that they should have been given bigger discounts on their car insurance during the coronavirus, as fewer cars are on the roads and fewer insurance claims are being filed.

These COVID-19 rate reduction class action lawsuits were filed by policyholders from the insurers. They say that, though they received some relief from their insurers under the pandemic conditions, this is not sufficient. In particular, they note that State Farm provided its policyholders with a 25% credit on their policies between March 20 and May 31, 2020. 

In the eyes of the policyholders, the other insurers gained significant profits from the conditions of the pandemic, as fewer claims were being paid out. Allegedly, this meant that the insurers should have, in turn, passed this benefit on to consumers. The consumers assert that the companies’ failure to provide a sufficient reduction in premiums was an attempt to maximize profits and “secure…an unearned and unfair windfall” as a result of the pandemic conditions.

Now, the policyholders with Allstate car insurance, Geico car insurance, Progressive car insurance, and others are asking for premiums to be reduced both for new policyholders in the future and for existing policy holders. In their eyes, the current policyholders’ premiums were based on “overstated and obsolete claim projections” and should now be reduced.

The Allstate car insurance, Geico car insurance, Progressive car insurance premium class action lawsuits assert that the companies are violating the Illinois Consumer Fraud and Deceptive Businesses Practices Act. The drivers explain that the law prohibits a company from misrepresenting services to customers, and assert that in charging their specified rates for car insurance, the companies represent that the offer is fair and reasonable.

However, the Allstate car insurance, Geico car insurance, Progressive car insurance class action lawsuits argue that these rates are not fair or reasonable under pandemic conditions. They note that insurers set rates by extrapolating from “recent historical experience” regarding claims submitted, premium payment, and the cost of setting claims. They reportedly also calculate other expenses in, including administrative expensive and non-claim selling. Allegedly, insurers set their premiums by incorporating these costs.

Allstate, GEICO, and Progressive car insurance premiums are allegedly too high considering COVID-19 changes.The policyholders with Allstate car insurance and others explain that, based on these criteria, rates should go up and down based on market and claim information. They say that, because of COVID-19 restrictions, there have been a drastically lower number of cars on the road and drivers that do continue driving are on the road less.

Such has reportedly been the case since mid-March 2020, an occurrence which also has led to a reduction in the number of accidents. This has in turn led to a reduction in the number of claims filed and a reduction in the amount of benefits that insurers have to pay out, say the policyholders.

This means that the pandemic has been a boon for car insurers, where it has financially injured many other businesses, assert the policy holders.

Allegedly, the companies should pass on this benefit to drivers, but instead, they have been using their customers’ premiums to profit even further. They claim that the insures made only feeble attempts at compensating consumers, which were supposedly intentionally insufficient.

GEICO previously faced a lawsuit similar to the one it faces in this more recent legal news.

How have your insurance policies been affected by the coronavirus pandemic? Share your experiences in the comments below.

The policyholders are represented by Antonio M. Romanucci and David A. Neiman of Romanucci & Blandin LLC, and by John S. Spadaro of John Sheehan Spadaro LLC.

The Geico Car Insurance COVID-19 Rate Reduction Class Action Lawsuit is Roxanne Thomas, et al. v. Geico Casualty Company, Case No. 2020CH05163, in the Circuit Court of Cook County, Illinois, Chancery Division

The American Family Insurance COVID-19 Car Insurance Rate Reduction Class Action Lawsuit is Holly R. Ridings v. American Family Insurance Company, Case No. 2020CH05165, in the Circuit Court of Cook Count, Illinois, Chancery Division.

The Progressive Car Insurance COVID-19 Rate Reduction Class Action Lawsuit is Peter Kopsaftis, et al. v. Progressive Universal Insurance Co., et al., Case No. 2020CH05162, in the Circuit Court of Cook County, Illinois, Chancery Division.

The Allstate Car Insurance COVID-19 Rate Reduction Class Action Lawsuit is Dino Anagnos, et al. v. Allstate Fire and Casualty Insurance Company, Case No. 2020CH05164, in the Circuit Court of Cook County, Illinois, Chancery Division.

Don’t Miss Out!

Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!

We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.


634 thoughts onCOVID-19 Allstate, Geico, Progressive Car Insurance Lawsuits Seek Reduced Premiums

  1. CHARLENE CINTRON says:

    GEICO PRESENTLY STOLE MY CAR AND IN COLLUSION WITH MY LIEN HOLDER TRYING TO MAKE ME SIGN A TOTAL LOSS SETTLEMENT

1 58 59 60

Leave a Reply

Your email address will not be published. By submitting your comment and contact information, you agree to receive marketing emails from Top Class Actions regarding this and/or similar lawsuits or settlements, and/or to be contacted by an attorney or law firm to discuss the details of your potential case at no charge to you if you qualify. Required fields are marked *

Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.