Liberty Mutual class action overview:
- Who: A federal judge certified a class of Liberty Mutual policyholders who allege the company prematurely terminated their rental car benefits.
- Why: The plaintiffs allege Liberty Mutual breached their car insurance policies by limiting their rental car benefits.
- Where: The Liberty Mutual class action lawsuit was filed in Massachusetts federal court.
A federal judge has certified a class of Liberty Mutual policyholders who allege the company prematurely terminated their rental car benefits in breach of their car insurance policies.
The plaintiffs sought to certify a class of Liberty Mutual policyholders who made a claim for rental car benefits following a total loss of their vehicle and had their benefits limited to less than 30 days.
Liberty Mutual opposed the plaintiffs’ motion for class certification, arguing that the plaintiffs’ claims were not typical of the class and that the case would devolve into a series of mini-trials.
U.S. District Judge Brian Murphy ruled the plaintiffs satisfied the requirements for class certification under Federal Rule of Civil Procedure 23(b)(3) and certified the class. Murphy denied the plaintiffs’ motion for class certification under Rule 23(b)(2), however, finding the plaintiffs primarily seek monetary damages.
Lawsuit: Liberty Mutual failed to determine reasonable amount of time to replace totaled vehicle
Plaintiff Diane Watts and two other Liberty Mutual policyholders filed the class action lawsuit against Liberty Mutual Personal Insurance Co. in November 2023, alleging violations of state and federal consumer protection laws.
The plaintiffs allege Liberty Mutual has a policy or practice of limiting rental car coverage without determining the reasonable amount of time needed to replace a totaled vehicle.
The plaintiffs say they each purchased car insurance policies through Liberty Mutual that included an optional transportation expenses coverage endorsement that provided rental car coverage for up to 30 days following a total loss.
Liberty Mutual terminated the plaintiffs’ rental car benefits after just seven days, according to the lawsuit, allegedly based on a company guideline rather than an individualized determination.
Murphy found that the plaintiffs satisfied the requirements for class certification, noting that the plaintiffs identified more than 4,000 potential class members based on Liberty Mutual’s claims data.
In November, a consumer filed a separate class action lawsuit against Liberty Mutual, alleging the company made illegal robocalls to consumers without their consent.
What do you think of the allegations made in this Liberty Mutual rental car insurance class action lawsuit? Join the discussion in the comments.
The plaintiffs are represented by Shanon Carson, Michael Twersky, Julie Selesnick and John G. Albanese of Berger Montague and Richard M. Ochroch, Brett N. Benton and Andrew R. Ochroch of Ochroch Benton P.C.
The Liberty Mutual class action lawsuit is Watts, et al. v. Liberty Mutual Personal Insurance Co., Case No. 23-12845-BEM, in the U.S. District Court for the District of Massachusetts.
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