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 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.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
43 thoughts onAllstate Class Action Claims Insurer Unfairly Profited From Pandemic With Its Auto Insurance Premiums
I haven’t received anything from Allstate other than an increase when it renewed
I had an oddly weird increase also when it to my renewal!!! And they demanded I pay half of my 6 months up front the first month!
I’m in MI and I feel I should have received more then what they gave me. I think it was about 15%.
I am in Indiana. I have Allstate. We need a class action started. I only got maybe 10% refund for maybe 3 months. Please contact me.
Please add me, paid a lot during the pandemic with Allstate searching for new insurance
Add me
I’m not sure if this applies to South Carolina. I did not get help from Allstate. I was wondering about that, I was like why are we paying for all this insurance when I cars was not even on the road? I stayed in for a year. Then I started going out twice a month when I could no longer afford home delivery smh still I was not as much as I would normally be.
Allstste raised my rate multiple times it was a complete mess it would be one rate one month and then it would change and get raised the next month I had auto payment and changed banks updated my Information only to have them charge the wrong account causing a huge overdraft being charged to me since my bank covered it then I still get a notice saying I never paid the bill and they are still trying to charge me for that bill even though my bank paid the bill and they will not fix this for me
Please add me I have all state
All state did not help me during the pandemic. and they have raised the prices 7 dollars more. i do not feel the little money they took off my insurance payment for one month was adequate.
Add me
All state did not help me during the pandemic. and they have raised the prices 7 dollars more. i do not feel the little money they took off my insurance payment for one month was adequate.