Allstate California insurance premiums $25M class action settlement

Allstate agreed to a $25 million class action lawsuit settlement to resolve claims that it determined California auto policyholder premiums based on unapproved rating factors.

The settlement benefits current and former California primary policyholders of certain Allstate auto policies whose premiums were calculated between July 1, 2016, and Sept. 30, 2022, based on a rating factor Allstate selected. 

Primary policyholders include those whose premiums were determined based on licensure for 29 or more years and had comprehensive coverage; those whose premiums were determined based on licensure of 34 or more years and had collision coverage; and those who, in addition to their auto policy, had a condo, life and/or mobile home policy and did not have a renter’s policy. The policies held by such multipolicy primary policyholders “in addition to their auto policy are the following: Condo; Mobilehome; Life; Owner + Life; Condo + Life; Mobilehome + Life; Condo + PUP; Mobilehome + PUP; Life + PUP; Owner, Life + PUP; Condo, Life + PUP; Mobilehome, Life + PUP,” according to the settlement website.

According to the class action lawsuit, Allstate unlawfully determined California auto policyholder premiums with rating factors based on market factors. Plaintiffs claim that these factors resulted in higher premiums than if Allstate used rating factors approved by the insurance commissioner to have a substantial relationship to the risk for losses. 

Allstate is a nationwide insurance company that offers auto, home, renter’s, condo, motorcycle and other policies.

Allstate hasn’t admitted wrongdoing but agreed to a $25 million settlement to resolve the class action lawsuit.

Under the terms of the settlement, class members can receive an equal share of the net settlement fund. Each class member is estimated to receive $12.40, though actual payments may be higher or lower depending on participation rates.

The deadline for exclusion and objection is April 9, 2024.

The final approval hearing for the Allstate California auto rating settlement is scheduled for May 22, 2024.

No claim form is required to benefit from the settlement. Class members who do not exclude themselves will automatically receive a payment by check for former policyholders or a policy credit for current policyholders.

Who’s Eligible

Current and former California primary policyholders of certain Allstate auto policies whose premiums were calculated between July 1, 2016, and Sept. 30, 2022, based on a rating factor Allstate selected. 

Policyholders include: those whose premiums were determined based on licensure for 29 or more years and had comprehensive coverage; those whose premiums were determined based on licensure of 34 or more years and had collision coverage; and those who, in addition to their auto policy, had a condo, life and/or mobile home policy and did not have a renter’s policy. The policies held by such multipolicy primary policyholders “in addition to their auto policy are the following: Condo; Mobilehome; Life; Owner + Life; Condo + Life; Mobilehome + Life; Condo + PUP; Mobilehome + PUP; Life + PUP; Owner, Life + PUP; Condo, Life + PUP; Mobilehome, Life + PUP,” according to the settlement website. 

Potential Award

$12.40 (estimated)

Proof of Purchase

N/A

Claim Form

N/A

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Exclusion Deadline

04/09/2024

Case Name

Stevenson v. Allstate Insurance Co., et al., Case No. 4:15-cv-04788-YGR, in the U.S. District Court for the Northern District of California

Final Hearing

05/22/2024

Settlement Website

AllstateCaliforniaAutoRatingSettlement.com

Claims Administrator

Stevenson v. Allstate
c/o Kroll Settlement Administration LLC
PO Box 225391
New York, NY 10150-5391
info@AllstateCaliforniaAutoRatingSettlement.com
833-383-4978

Class Counsel

Cyrus Mehri
Jay Angoff
MEHRI & SKALET PLLC 

Jeff Osterwise
BERGER MONTAGUE PC 

Andrea Gold
TYCKO & ZAVAREEI LLP 

Defense Counsel

Michael P O’Day
DLA PIPER LLP (U.S.)