Allstate class action lawsuit overview:
- Who: A pair of Lyft rideshare passengers are suing Allstate Insurance Co. and North Light Specialty Insurance Co.
- Why: The plaintiffs say the insurers overcharged Lyft riders for insurance that was not compliant with California law.
- Where: The Allstate class action lawsuit was filed in California federal court.
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A new class action lawsuit alleges that Allstate Insurance and North Light Specialty Insurance charged Lyft passengers for insurance that was not compliant with California law.
Plaintiffs Bruno Llerena and Christopher Roselli filed the class action complaint against Allstate and North Light in California federal court on Nov. 18, alleging violations of state consumer laws.
According to the lawsuit, Allstate and North Light, a subsidiary of Allstate, charged Lyft passengers for a robust, legally compliant insurance safety net while providing an illusory and unlawful product designed to evade its core legal obligations.
The plaintiffs say California law mandates that Transportation Network Companies (TNCs) like Lyft provide their passengers and drivers with a $1 million primary policy of uninsured/underinsured motorist (UM/UIM) coverage.
This mandatory insurance is a cornerstone of the state’s public safety framework for TNCs, intended to provide a seamless and immediate source of compensation for both rideshare passengers and drivers injured by uninsured or underinsured drivers, they claim.
The plaintiffs allege that in a bid to win Lyft’s lucrative statewide insurance contract, Allstate and North Light engineered an unlawful UM/UIM product that systematically violates California law.
The policy contains illegal provisions that render its UM/UIM coverage secondary, not primary, and that unlawfully exclude entire categories of damages, such as all medical expenses for injured drivers, they allege.
A similar lawsuit, also filed in California, claims Progressive and Blue Hill Specialty Insurance made UM/UIM coverage secondary instead of primary for Uber rideshares.
Allstate, North Light cut corners on insurance, lawsuit claims
The plaintiffs allege this scheme allowed the companies to offer artificially low premiums to Lyft by drastically reducing their own risk exposure, gaining a decisive competitive advantage at the direct expense of Lyft’s customers who funded the unlawful policy.
“The financial harm to Lyft’s customers and defendants’ insureds was not an incidental byproduct of this scheme; it was its direct and intended predicate,” the Allstate class action lawsuit states.
The plaintiffs are looking to represent anyone who paid Lyft for ride-share services provided within the State of California from Oct. 1, 2020, to Oct. 1, 2022.
They are suing for violations of California consumer laws and are seeking certification of the class action, damages, fees, costs and a jury trial.
Earlier this year, Texas sued Allstate and its subsidiaries, claiming the insurer “secretly” collected and sold data from mobile devices, in-car systems and vehicles reflecting “trillions of miles” of consumers’ driving behavior.
What do you think of the allegations made in this Allstate Lyft insurance class action lawsuit? Let us know in the comments.
The plaintiffs are represented by Alex S. Madar of Madar Law Corp. and Michael A. VanGalio of VanGalio Law Corp.
The Allstate class action lawsuit is Llerena, et al. v. Allstate Insurance Company, et al., Case No. 3:25-cv-09915, in the U.S. District Court for the Northern District of California.
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