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
Please tell me how I can be a part of this lawsuit. My vehicle was deemed a total loss before being examined when it was repairable. Now I am about to lose my rental due to time restrictions and thru are claiming they have not received payoff information after I have the date it was sent, which leaves me S.O. L with 5 children and no means to help myself thinking I was covered. I have to wonder what kind of hands have I been in with no compassion through the pandemic . TOTALLY DEVASTATED
Allstate takes your money and provides no service. I aked them to send help when my downstairs flooded , They had no venders in the area. Now 4 wqeek later they are questioning me about the process. I am not trying to cheat anyone. Thats why I asked them to come out. They wanted me to cust a large chunk out of my carpet and send it to them? Now they are refusing to replace it . Just clean it. I am glad I did not cut the chunck out. Pitiful service. I was told if I filed the claim my insurance with probably go up. 25 years with them.
Stay clear!
You should also check for new York allstate insurance agents claiming the injured a car accident by forging the injured signature and stealing injured medical records and broken bones settlements, no one investigates in ny, it happened to me and when I sued as prose index no 2621/2018 supreme court of queens ny judge allan b weiss the court clerk’s told me to send my 3 million dollars signed and notarized default judgment to my 1982 allstate agent named Michael KALKIN, he stole it, and I am requesting my signed and notarized 3 million dollars default judgment back no one gives it back to me, they tried to kill me 3 times not to give it to me, first they tried to bomb me, no one investigates when I complain,
Allstate is scamming people I sent my Mercedes into the dealership on April 15, 2022 and it’s now June 30,2022 and the adjuster said to me back in may on the 5th that the dealership said my car wasn’t there then 4days latter after I made a police report he says it’s there….wtf…. Then he says my car is totaled out how when I sent it in just for the tires and battery…I knew it was a scam cuz the lady from the dealership called me and said she couldn’t do the recalls because my car wouldn’t start and how does she get it to start….first of all ur a dealership how u don’t know how to start a car and 2nd of all my recalls doesn’t need my car to start and then adjustment was done 3 hours after the fact the time I saw the adjustment it was 3:30 pm here and the adjustment said 5:30 how if we’re in the same state just 30mins away from each other then the adjuster told me he was gonna handle all the DMV paperwork and I wouldn’t have to worry about anything if my car is totaled out why do u need anything from the dmv….I have the adjustment paperwork and they paid almost 2000 for the parts and for my car to get painted and everything….he said my car was totaled out and that i should receive payment by the next business day sad part is that I haven’t received any payments and he sent me a adjustment from allstate for $5235.15 and then he did his own for 3000. Which I don’t get that and then after the fact that I don’t have the title and I lost the key and I said it multiple times he is gonna send me a email stating that by a certain time I would have to send the title and key in to them or else like there the police and shit….allstate Northbrook needs to cut these scams out cuz i paid for my car cash
Hello
I live in Cleveland OH. I’m also retired, no tickets or accidents. My auto insurance was increased in June 2022 without any official notice from Dallas TX. As it states at the top left hand corner of my invoice.
Please add me to the Class Action Lawsuit. Thank you so much!
Add me
I live in Alabama and I have had a time with this company. From rude adjusters to just the run around and no one returning my call. They are the worst insurance company I have ever dealt with. And they lie and just terrible to deal with.
We got a very small check back I believe it was under $20. In addition, my rates went up $100 per month after I turned in a no fault claim.
I am using the milewise but because the wiring is messed up in my van they are charging me 40 miles a day I have told them that they can’t charge people for miles they don’t use. And now I have gotten 3 different Quotes about a different policy PLEASE ADD ME
I live in Illinois and my premium went up by $30 per month beginning in June. I’m retired have no accidents or tickets. Please add me to this lawsuit