Lawsuits that are class action were filed in Sin City against 10 major auto insurance companies this past Tuesday. The lawsuits say that the companies charged extreme insurance premiums during the COVID-19 pandemic. Because they failing to account for a dive in driving and crashes.
Lawsuits Acknowledge Lack of Meaningful Relief for Drivers
Some insurers, the lawsuits acknowledge did not provide discounts over emptier roads and drops in accidents and claims. Nor, did the discounts offer “any meaningful relief that actually reflects the reduction in cars on the road and reduced driving during the pandemic,” according to the court filings. Moreover, the rates were charging that violate state law against excessive premiums, the lawsuits contend.
Lawsuits Filed on Behalf of Nevada Insurance Customers
In fact, lawsuits filing on behalf of Nevada insurance against companies including State Farm, USAA, Geico, Acuity, Liberty Mutual, Farmers, Progressive, Travelers, Nationwide and Allstate.
“Allegations within the complaint do not substantiate the filing of a lawsuit,” State Farm, the country’s largest auto insurer, said in a statement. “It is premature to comment at this time, we have only recently learned about the filing.”
Moreover, Liberty Mutual declined to comment.
Seeking comment by phone and email messages from other insurers not immediately returning this past Tuesday.
Decline in Traffic and Crashes, Refunds or Credits to Drivers
Reporting decline in traffic and crashes when the COVID-19 pandemic related closures and stay-at-home orders imposing starting last spring. Therefore, selling the majority of policies across the U.S., companies started to announce refunds or credits to drivers.
Reflecting pandemic driving conditions varied, the discounts provided by insurance ranged from $50 to $100 one-time refund from Acuity. A 25% reduction in bills from March 20th to May 31st from State Farm. To a 15% credit from Geico only when in fact renewing a policy between April 8th and October 7th. This was according to the lawsuits.
Major Rate Increases to the Public are Unacceptable and Discounts are Inadequate
“The rates should have cut to something in excess of 50-60%,” said Robert Eglet, lead counsel for the law firm Eglet Adams. They filed the lawsuits. Moreover, if discounts were given, they were sadly inadequate.”