Class action lawsuits were filed in Nevada against 10 major auto insurance companies on Tuesday, including State Farm, 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."
The lawsuits were filed against Bloomington-based 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 said in a statement, The AP reported. "We’ve recently learned about the filing, and it is premature to comment at this time."
Attorney Robert Eglet is lead counsel for the law firm Eglet Adams, which filed the lawsuits.
"I believe that the rates should have been cut something in the order of 50-60%. These discounts that were given, were just totally woefully inadequate," Eglet said.
Auto insurers gave back billions of dollars last year as driving—and crashes and claims—plummeted due to stay-at-home orders.
State Farm offered 25% premium refunds, then cut auto rates by 11% on average nationwide. State Farm says those actions totaled about $4.2 billion in relief.
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