Attorney Eglet filed a class action lawsuit against 10 major auto insurers on behalf of Nevada auto policyholders.
Nevada auto policyholders filed a class action lawsuit on the 23rd against 10 major auto insurers, alleging that the insurers failed to account for a decrease in travel and collisions during the Epidemic and overcharged customers for insurance.
According to court documents, the complaint acknowledges that the insurers offered discounts for lower road traffic, accidents and claims, but that these discounts “were not meaningful relief that actually reflected the reduction in traffic on the roads during the epidemic” and that the insurers overcharged premiums in violation of state law.
Nevada insurance customers are suing State Farm, USAA, GEICO, Acuity, Liberty Mutual, Farmers, Progressive, Travelers, Nationwide and Allstate.
State Farm, the nation’s largest auto insurer, said in a statement that it had just been informed of the lawsuit, but that “the filing of a lawsuit does not mean that the allegations have been proven and it is too early to comment.” USAA said it is “reviewing the lawsuit; however, last year USAA paid back dividends to all auto policyholders in three installments totaling $1.07 billion due to the epidemic.
Nationwide’s statement said it “will continue to take a longer-term view of consumer driving behavior and how it affects future miles traveled and accident frequency. We are incorporating the benefits of slower travel volumes into future rates on a state-by-state basis, taking into account factors such as miles traveled or lower accident claims when updating premium rates.”
At the start of last spring’s epidemic, states across the country showed decreases in traffic volumes and accidents, and most auto insurers announced refunds or reductions for drivers; discounts varied, with Acuity offering a one-Time refund of $50 to $100, State Farm reducing its bill by 25 percent from March 20 to May 31, and GEICO offering a 15 percent credit between April 8 and Oct. 7 for renewal customers. GEICO offered a 15% credit to customers who renewed their contracts between April 8 and October 7.
Robert Eglet, the lead attorney at Eglet Adams, who filed the lawsuit, said, “Auto insurance premium rates should be cut by about 50-60 percent, and the discounts previously given by insurers are simply not painful.
Consumers Federation of America (Consumer Federation of America) also made similar comments last year, in addition to the view that insurance companies provide inadequate relief to customers, and that the decline in auto claims, the state insurance commissioner regulating the auto insurance industry has “failed to prevent auto insurance companies from making a windfall “.
According to the lawsuit, there were 60 percent fewer auto accidents in southern Nevada in March 2020 compared to the same month the previous year. Eglet expects that other states may follow suit with class action lawsuits.
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