Lawsuits filed against auto insurers over rates in pandemic

[Judi Lynn]

Source: Associated Press


MICHELLE L. PRICE,
Associated Press
Feb. 23, 2021
Updated: Feb. 23, 2021 8:31 p.m.

LAS VEGAS (AP) — Class action lawsuits were filed in Nevada against 10 major auto insurance companies on Tuesday, contending that the companies charged excessive insurance premiums during the pandemic by failing to account for a drop in driving and crashes.

The lawsuits acknowledge that some insurers provided discounts over the emptier roads and drop in accidents and claims, but the discounts did not 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. The rates that were charged violate state law against excessive premiums, the lawsuits contend.

The lawsuits were filed on behalf of Nevada insurance customers against State Farm, USAA, Geico, Acuity, Liberty Mutual, Farmers, Progressive, Travelers, Nationwide and Allstate.

“The filing of a lawsuit does not substantiate the allegations within the complaint,” State Farm, the country’s largest auto insurer, said in a statement. "We’ve recently learned about the filing, and it is premature to comment at this time.”

Read more: https://www.chron.com/news/article/Lawsuits-filed-against-auto-insurers-over-rates-15974125.php

[jimfields33]

1. USAA gave 3 refunds during 2020.

I think it was across the board. Maybe some thought it wasn’t enough.

[sinkingfeeling]

4. So did Safeco.

[George II]

2. Our insurance company, Travelers, gave us a refund on our car insurance policies. I believe....

....they did it twice in fact.

[bucolic_frolic]

3. I'm not surprised, a couple of those alleged culprits

were my insurers in decades past. The less I drove, the older and more worthless my cars were, the higher the premiums went.

I finally gave up and went with a sort of mutual company. I got a minimal rebate last spring, and no reduction in rates this year because they didn't want to re-rate the policy. But it is very reasonable insurance.

[Karma13612]

5. State Farm

Gave us two discounts.

Not huge, but they made a gesture.

In years past, they were the only Ins co that I ever had that gave refund checks during terms when their payouts for claims was lower than what they took in for the premiums.

They are also very proactive with your coverage and finding ways to save you money on your premiums.

[AKwannabe]

6. Geico

Gave me one 15% reduction.

Pulled the 15% right outta their asses!