Insurance class class action lawsuits, settlements overview:
- Who: Consumers recently filed class action lawsuits against the United Services Automobile Association, Geico General Insurance and Humana. Allstate and Owners Insurance both recently agreed to class action settlements.
- Why: The settlements and class action lawsuits involve denying care to elderly patients and underpaying on insurance claims.
- Where: The class action lawsuits and settlements affect a variety of consumers across the United States.
There have been several class action lawsuits and settlement agreements involving insurance companies lately, with allegations of underpaid claims and denied care to elderly patients with Medicare Advantage plans.
USAA wrongly denies, underpays claims, class action says
A pair of Washington residents filed a class action lawsuit against the United Services Automobile Association (USAA) in December, arguing the insurer used a third-party company to improperly reduce or deny claims related to automobile personal injury protection and medical payment.
The insurer is accused of using a computer program called Medical Bill Audit (MBA) that is operated by third-party company Auto Injury Solutions as part of an alleged scheme to wrongly deny claims.
“The MBA process is designed, largely through automated computer processes, to categorically and systematically, without human input, eliminate, abate and/or reduce the amount USAA pays for its insured’s health care expenses based upon its treatment of various codes,” the USAA class action states.
Geico fails to pay vehicle lessees true value after total loss accidents, class action says
A consumer filed a class action lawsuit against Geico General Insurance Co. last month, arguing the insurance company fails to update its vehicle estimates so they will determine the actual cash value of a leased vehicle involved in a total-loss accident.
The consumer argues Geico should update the vehicle estimates for a leased vehicle so it reflects the increased value of a used vehicle in the current market.
“In recent years, the automotive industry has experienced a trend: used car prices have not only remained stable, but in some cases, steadily risen,” the Geico class action states. “As used car prices have risen, the residual value of leased vehicles — the estimated value of the car at the end of the lease term — has also increased.”
The consumer argues Geico should pay individuals who are leasing vehicles involved in a total loss accident the total value of what their vehicle would be at the end of its lease.
Humana accused of using AI to wrongfully deny medical care to elderly patients
A pair of individuals filed a class action lawsuit against Humana last month, arguing the insurance company uses an AI model to wrongfully deny care to elderly patients whose human doctor found medical care was necessary under its Medicare Advantage plans.
Humana is allegedly aware its AI model, nH Predict, makes highly inaccurate predictions that aren’t based on patients’ medical needs but uses the model to deny medical coverage anyway, the Humana class action alleges.
“Despite the high rate of wrongful denials, Humana continues to systemically use this flawed AI Model to deny claims,” the Humana class action states.
Allstate to pay at $2.2M to end claims it underpaid uninsured motorist claims
In November, Allstate agreed to pay at least $2.2 million to end claims the insurance company failed to fully pay auto insurance policyholders in New Mexico following incidents that occurred with an uninsured motorist.
The settlement was made to benefit a New Mexico class of Allstate policyholders covered under an uninsured/underinsured motorist policy that was initially issued or renewed between Jan. 1, 2004, and July 11, 2022, and who made a claim under the policy’s coverage where benefits were reduced or denied.
Allstate had been accused of violating New Mexico law by allegedly basing coverage limits off a third party that reduced uninsured motorist coverage.
Vehicle owners who want to make a claim to join the class action settlement must submit a valid claim form by Feb. 5, 2024.
Owners Insurance settles claims it failed to include taxes with total loss payments
In December, Owners Insurance agreed to a class action settlement resolving claims the mutual insurance company violated Georgia law by allegedly failing to include taxes with its total loss payments.
The settlement benefits a class of Georgia residents with an Owners Insurance auto policy and who submitted a claim that resulted in a total loss between Jan. 1, 2020, and Aug. 2, 2022, and who then did not receive at least 6.6% of the actual cash value for the total loss vehicle for title ad valorem tax.
Vehicle owners who want to make a claim to join the class action settlement must submit a valid claim form by Feb. 6, 2024.
Have you been affected by a recent class action lawsuit or settlement involving an insurance company? Let us know in the comments.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
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157 thoughts onGeico, Humana, USAA face class actions as other insurance companies agree to settlements
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Humana added 35 hours of Home Healthcare to my 2023 Plan into 2024 it does not exist! Deceitful Practices just to get you enrolled, I’m struggling financially to survive paying out of pocket.
I used to have geico insurance and I paid full then they needed more information I had to send by email and they said it wasn’t good enough and I thought that was Bs. Yes add me.
I was with the national general. And I had a insurance plan with them. And they illegally terminated my plan as receiving full payment in advance for it. And then try to backdate my insurance. Also and lie about all the sign paperwork and everything That I did via email I am also currently with all state also
In a current situation with Geico now, so please add me.
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I have USAA on home and auto, but here lately they have outrageously raised my premiums almost 50%. I have zero claims. It’s always the endless excuse of your state raise your premiums.
They told me it was cost of living. I canceled my policy with them the increase was ridiculous with no claims at all and they did the same thing to my daughter.
Geico reported an accident to let this Nexus what out informing me I found out about it when it was time to renew the policy it doubled try speaking to the management team very nasty guy he informed me no matter but the circumstances was I was held responsible and that the pictures I submitted to them didn’t matter after 15 years of being with this company I couldn’t get an understanding about what they were saying I dropped that insurance this lady claimed that my front license plate cover scratched her vehicle on the passenger side from the front to the back of her vehicle. She also claimed that I was trying to make a u-turn on a six-lane street they believed her and she was paid.
I have had USAA since I was 16 and I’m now 49. I purchased a 2012 Honda CRV in May 2017. I contacted USAA to add the vehicle to be insured but asked if I could wait to add collision on my Honda CRV once I got my 2001 Pathfinders to the salvage yard; and had it the insurance coverage on it terminated. They stated I could add collision at anytime it just would take until the following night before it would be added. I contacted them after I faxed the Pathfinder bill of sale in July 2017 to add collision to my CRV.
They continued to bill me for my pathfinder which I no longer had possession of or owned for 18 months after I faxed them the proper documentation to have the vehicle dropped. I continued to send the information repeatedly from my Dad’s law office yet they did not stop charging me for 18 months. Then on July 7, 2022 I passed out while driving to the hospital due to a vasovagal syncope. The car was demolished and clearly deemed totalled. It was that evening I learned the claimed I had basically every type of coverage but collision. I inquired as to whether they had any recordings or notes to substatiate their claim that I never asked to have collision insurance and they responded they no longer had any of my call recordings and no notations regarding my request for collision coverage nor did they have any record of my requesting to have my pathfinder removed. Although oddly they did reimburse 3 months of the insurance payments on the pathfinder randomly
In addition they found that accident to be my fault in spite of the police officer sending them his letter stating I was not at fault due to an unforeseeable medical issue. In addition to that they also claimed I was at fault for an accident that occurred in a food lion parking lot, when I was pulling out off the lot but at a stop and hit by a Cadillac Escalade. I called and gave my statement and the other driver’s information and heard nothing. I ha minimal damage and was not in a rush too repair it. But I only learned they found me at fault and was liable for $14500 when I was 5 days late on my payment and they dropped me. When I was reinstated they upped my insurance 3 times as much as I had been paying claiming it was a result of my at fault accidents and damage paid out.
I told them prior to being dropped I was appealing their decisions and may seek my legal recourse.
I’m less than pleased with them.
Emily Roberts
I was a victim of USAA. Last year my truck was stolen and they used third party software to under pay my vehicle claim my truck is worth 30,000.00 and they tried to pay me off with 14,000.00 it took me almost 8 months to come to an agreement and almost cost me my job due to all the time I had to take off work to to resolve this plus almost a full months pay.
I was denied care many times by Humana for physical therapy, but my insurance was medicaid last year and now I have medicare
My car was damaged by hail. Geico sent a young man out to do the estimate and he gave me a quote that was very very low and he said that the shop were I had to take my vehicle would get the payment for the correct total of the repair. I asked him why was the shop getting the value of the repair since he had given me an estimate under the price of the repair. I received a check and didn’t cash it for months and then a lady from Geico called me and asked me why hadn’t I cashed the check and I told her that the guy had given me an estimate that was very very low and I know this because the repair shop had already given me a quote. She said that if I cash the check she would have the shop redo my estimate; she lied and when I went back to the shop, they said they couldn’t give me another quote for Geico. She lied to me and I never got my car repaired because of her lying and because I felt that the shop I used should have been my choice and not theirs. The guy who did the quote called and when I contacted him back he never responded to my calls.