Allstate pricing has come under scrutiny from Illinois policyholders who claim that their premiums are too high based on their risk profiles. Some consumers took their complaints to court, arguing that Allstate violates Illinois’ Consumer Fraud Act.
In Illinois, a driver must have insurance coverage in order to drive. If a driver fails to purchase automotive insurance, they may be subject to fines and having their license suspended. Some Illinoisans chose to purchase an auto insurance policy through Allstate, a nationally known company. Unfortunately, this insurer may force older, loyal customers to pay higher rates than new customers despite having the same risk profile.
In 2016, several Allstate policyholders from Illinois filed a class action lawsuit against the insurer, contending that this unfair pricing violates Illinois’ Consumer Fraud Act and other state consumer protection laws. Allstate is not alone, as 10 other national auto insurers were accused of not adjusting rates properly in Nevada.
“Allstate’s data indicates that its most loyal customers are willing to pay more than new customer who present the same risk,” the Allstate pricing class action lawsuit alleges.
“Allstate therefore requires its most loyal customers, including plaintiffs, to pay more than they would pay based on the risk they present, and to pay more than other customers who present the same risk.”
According to the plaintiffs, “the Illinois Department of Insurance recognizes that automotive insurance rates must be based on risk” instead of other factors such as how long a policy has been in effect. Despite these regulations, Allstate allegedly chooses to follow recommendations from consulting companies and unfairly increases a policyholder’s premium rates based on their statistical willingness to accept higher prices.
The Allstate pricing class action lawsuit argues that the plaintiffs and a proposed Class of similar situated customers suffered from financial injuries through the insurer’s unfair pricing policies. On behalf of themselves and a proposed Class of overcharged Illinois Allstate policyholders, the plaintiffs seek damages of at least $50,000.
In January 2019, an Illinois appeals court sided with the plaintiffs in a 2-1 ruling which found that Allstate’s rates are not controlled by the Illinois Department of Insurance. As a result, the plaintiffs can continue with their allegations in Illinois court instead of having the issue taken over by the Department of Insurance.
“The allegations of unfair and deceptive business practices and unjust enrichment come within the experience and conventional competence of the Illinois courts,” one appellate judge wrote.
If you were overcharged for your Allstate premiums in Illinois, you may be eligible to take legal action. Attorneys are interested in speaking with policyholders who have held a policy with Allstate since at least June 2011.
The Illinois Allstate Pricing Class Action Lawsuit is Jeffery A. Corbin, et al. v. The Allstate Corporation, et al., Case No. unknown, in the Circuit Court of the Third Judicial Circuit for Madison County, Illinois.
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10 thoughts onAllstate May Overcharge Loyal Customers, Class Action Says
I have been with allstate for 15 years, I had sent a check dated before the renewal expired, the check was lost but I have the duplicate, I learned from the DMV that I had no insurance, I was in shock thinking I was insured. Allstate said they had contacted me and left a message, I did not get it. Allstate did not send an email or mail telling me that the check had not been received, as a result I have to pay in fine more than 500.00 dollars to DMV, I have always paid my due faithfully, I have a good credit score, how can a company do this to a good customer. Do I have a case against Allsate reinstated but increasing my insurance.
If I had been warned that this check had not been received I would have paid right away with a debit card. If I had not received an email from the DMV I would never have known that Allstate had cancelled my policy. I think this is all Allstate’s fault, I have the duplicate of the check I sent in, in fact I have 3 duplicates from the same day that I sent in that day, the 2 duplicates follow each other in numbers the one sent to Allstate.
I’m in Tennessee and I have been affected by this high premiums by Allstate every year my bill goes up but they don’t want you to file any claims and when you do they want to under pay you
I live in Virginia. My daughter was driving my vehicle in which were insured with Allstate. An uninsured motorist hit her. Allstate denied the claim. Stating that the accident were planned.I was devastated. They didn’t pay for the damages that was done to my daughter or my vehicle but they wanted me to continue to have insurance with them. I got me a new insurance policy with another company.
I’m in Orlando, FL every time I renew my policy is higher and when I call to ask why is getting so high they tell me all the time to much people having accident in my area. I have more than 12 years with allstate but I’m safe driver. Why I have to pay for other people?
That’s the same thing they say in IL. Why am I paying for other people having accidents?
I have also been robbed by Allstate and live in Oregon. Can you please direct me
I’m a MS resident and they have done me wrong, by not giving me what was fairly owed and then increasing my premiums drastically. I’ve only had 2 claims in the last 17 years!
I have been an Allstate customer since I moved here in 2008 Please add me
Please add me
This happened to me in NY.