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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
How can I be added to suit? My premiums in Illinois also increased despite being retired and having no accidents/tickets.
Really, during the pandemic my auto insurance went up $100 a month. I was rear-ended not my fault but Allstate has it in the system that I’m at fault??? Is this how they can get more $ out of me. It’s hell trying correct these errors that some incompetent idiot entered into the system. This is not the first time either. My Agent never be returns my calls.
Allstate has given me helllll for weeks about recovering my belongings after my baby, cousin and I were in a car fire! I pay for full coverage as well as renters insurance. They did not recover my belongings saying their policies only cover the passenger not the driver & that basically they didn’t believe me that my items were burned up and damaged even though I have literal pictures of the whole thing. The worst insurance company ever! I shouldve stayed with geico! I was literally going through a financial hardship.
I live in California and have not received any reimbursement from allstate
I. Live in washington state. I have allstate. I didnt get anything off or back through the pandemic.
I. Live in washington. I dont think we got any back through the pandemic.
Now dealing with pathetic service on a claim with Allstate. Damage inspection all attitude. Delays and smugness. Long Island
I have had Allstate since 2019 and not ONCE have I every received anything from them! No refunds, heck not even any sort of reliable customer service when it came to my claims. They have done nothing but take from me and left me high and dry waiting to take again. It’s sad really
Please add me to this
I too have ALLSTATE and live in Indiana. I have Never received a refund of Any kind from them. According to their Commercials I’m supposed to be “In Good Hands with ALLSTATE”. That statement is nothing but jibberish and Lies. I would like to be added to the Lawsuit please.