Oregon Farmers Insurance Policyholders Get Class Action Certified

A court has certified a Class of Oregon drivers involved in a lawsuit that alleges Farmers Insurance failed to comply with state insurance requirements.

While the website is live, it is not accepting claims yet. Top Class Actions will provide claim filing instructions as soon as they become available.

Meanwhile, viewers will receive an email notice when this article is updated with more information by using a free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

A website has been established to inform Class Members about their rights under the class action lawsuit.

Individuals who purchased an auto insurance policy from Farmers Insurance Company of Oregon between June 29, 2012 and Nov. 30, 2016, are considered Class Members.

The Farmers Insurance class action lawsuit estimates that the Class includes 328,000 policyholders who are owed money by Farmers.

Plaintiff Steven Bellshaw filed a class action lawsuit against Farmers Insurance, claiming that the company failed to provide their Oregon policyholders with a notice that complies with ORS 746.280 and 746.290.

These state statutes require insurance companies to include statements approved by the Insurance Commissioner. Both statutes require every issued and renewed policy to include the following: “Oregon laws prohibits us from requiring you to get repairs to your vehicle at a particular motor vehicle repair shop. You have the right to select the motor vehicle repair shop of your choice.”

Farmers Insurance reportedly has a “Circle of Dependability” (COD) program through which it refers its customers to repair shops with approved repairs. The insurance company reportedly claimed that its COD program would take the burden off of customers when looking for repair estimates, relieve the need to be present for inspection, ensure that the Farmer’s warranty would be honored, and more.

However, Bellshaw claimed that this program is self-serving. Through this COD program, the company allegedly “administers and controls the repair process by limiting approved repairs, mandating the use of inferior replacement parts, and limiting the amount of labor and labor rates that participating shops may charge.”

ORS 746.280 requires further states that when an insurance company recommends a repair shop to a policyholder, it must inform the insured within three days of the recommendation, that the vehicle “will receive repairs returning it to a pre-loss condition relative to safety, function and appearance.”

Despite having a specialized COD program, Farmers Insurance allegedly failed to include these statements in a notice with Oregon insurance policies, thus violating state law.

Bellshaw also claims that Farmers fails to restore damages vehicle to pre-loss condition as is required by Oregon statutes.

“Farmers’ imposes these conditions upon the COD shops as a means of saving Farmers’ money on repair costs, even though the use of these techniques may negatively impact the quality, value and safety of the repaired vehicles and ensures that those vehicles are not returned to their pre-loss condition,” the Farmers Insurance class action lawsuit states.

The plaintiff is seeking a payment of $100 for each Class Member, but not actual damages.

A settlement has not yet been reached, but Class Members are encouraged to keep an eye on the informational website as it will be updated if/when Claim Forms become available.

Farmers Insurance denies the class action allegations and the case is still moving through the court.

The Class of Oregon Farmers Insurance drivers are represented by David Sugerman, Tim Quenelle and Amy Johnson.

The Farmers Insurance Class Action Lawsuit is Bellshaw v. Farmers Insurance Company of Oregon, Case No. 15-cv-16877, in the Circuit Court for the State of Oregon, County of Multnomah.