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Consumers say ten major auto insurers failed to properly adjust their rates to account for less driving and fewer wrecks during pandemic lockdowns in multiple class action lawsuits filed earlier this week in Nevada.
The lead plaintiffs allege that, though some companies offered discounts during COVID-19 restrictions that kept many workers home and off the road, the move failed to account for the drastic lack of driving during these times. One of the lawsuits state that insurers failed to provide “any meaningful relief that actually reflects the reduction in cars on the road and reduced driving during the pandemic.”
“I believe that the rates should have been cut something in the order of 50-60%,” a lawyer representing plaintiffs in all the lawsuits said in a statement to The Associated Press. “These discounts that were given, were just totally woefully inadequate.”
The class action lawsuits were filed against State Farm, USAA, Geico, Acuity, Liberty Mutual, Farmers, Progressive, Travelers, Nationwide and Allstate.
The lawsuits point out that pandemic lockdowns led to a decline in traffic and auto accidents starting in the spring of 2020. Some auto insurers offered a variety of discounts to reflect the changed conditions, from a one-time refund of $50 to $100 or temporary bill reductions. However, the plaintiffs argue that insurance companies’ discounts did not accurately account for the dramatic reduction in car accidents and as a result the companies experienced windfall profits.
The class action lawsuits say these savings auto insurers experienced during pandemic lockdowns should be passed on as lower rates to policyholders, along with damages.
Auto Insurers Respond to Class Action Lawsuits
A spokesperson for USAA told the Associated Press that the company was reviewing the lawsuit.
“I do think it’s important to note that on three occasions in 2020, USAA returned dividends totaling $1.07 billion to all auto insurance policy holders due to fewer drivers on the road because of the ongoing pandemic,” he told reporters.
“The filing of a lawsuit does not substantiate the allegations within the complaint,” State Farm reportedly said in a statement issued after the allegations were lodged. “We’ve recently learned about the filing, and it is premature to comment at this time.”
“Nationwide is taking the longer view while continuing to monitor consumer driving behaviors and how they impact future miles driven and accident frequencies,” the insurance company said in a statement issued Wednesday. “We know customers want fair rates and agents are seeking stability.”
Liberty Mutual declined to comment and other companies had not returned requests for comments, reports AP News.
Do you think you paid excessive rates to your auto insurance company during pandemic lockdowns? Tell us about it in the comment section below!
The lead plaintiffs in all the class action lawsuits are represented by Robert Eglet of Eglet Adams.
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446 thoughts onTen Auto Insurers Hit With Class Action Lawsuits Over Excessive Rates Amid Pandemic
Please add me, please. The rates are overwhelmingly high
Please add
Please add me as Liberty Mutual has been really messing my policy up. They do not investigate accidents they just accept the police report and pay out claim then charge me through my premium. I have been for two years almost trying to explain to them the situation but instead of them doing their due diligence they keep raising my premium to cover cost. Is this even legal? Thought I was going to die as I was sideswiped believed I was being carjacked. Liberty Mutual still took responsibility it is a nightmare that I can not get out of due to them taking responsibility I can not find another insurance to insure me.
Insurance rates actually increased rather than decreased. This makes absolutely no sense at all. There certainly should be major rebates to consumers from the insurance companies.
Pls add me geico is charging me 202 a month bought a new car last april only 3700 miles on it no work right now in Las Vegas.
GEICO in Houston, TX…Please add me!!!!!
Where do I sign up! Geico ripped everyone off last year and I was saying it the whole damn time. Their customer services sucks!
Please add me I was with Farmer’s and my premium increased during the pandemic. I am now with wawanesa. Farmer’s charges too much.
I am a Geico customer also & did not get any discounted premiums
With Geico in Las Vegas, me and wife and daughter all stayed home due to casinos (wife), conventions (me) and schools (daughter) shut downs, and although they offered a small discount I was still having to pay over $500 a month!!!!
Worst part the 3 vehicles were just parked, there was nowhere to go or do, at all!!!!
I am a Geico customer also & did not get any discounted premiums