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Lawsuits have been filed against car insurers over epidemic rates

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LAS VEGAS (AP) – Classic lawsuits were filed in Njada on Tuesday against 10 major car insurance companies, claiming that companies were charging excessive premiums during the epidemic, not taking into account the decline in driving accidents.

The lawsuits allege that some insurers offered discounts on empty roads, accidents and claims were reduced, but the discounts did not offer “any significant assistance that actually reflects the reduction of cars on the road – the reduction of driving during the epidemic,” according to court cases. The lawsuits allege that the rates charged violate state law for overpayments.

The lawsuits were filed on behalf of Nevada insurance clients vs. State Farm, USAA, Geico, Acuity, Liberty Mutual, Farmers, Progressive, Travelers, Nationwide և Allstate.

“The lawsuit does not substantiate the allegations in the complaint,” said a statement from the state farm, the state’s largest car insurer. “We just found out about the show. It’s too early to comment at this point.”

According to US spokesman Matt Hartwig, USAA was reviewing the lawsuit. “However, I think it should be noted that three times in 2020, the USAA returned $ 1.07 billion in dividends to all car insurers due to the ongoing epidemic of fewer drivers on the road,” he said.

“Nationwide, it has been observed for a long time, continuing to monitor consumer behavior, how they affect the frequency of accidents in the coming miles. “We know customers want fair interest rates and agents want stability,” the insurer said in a statement on Wednesday.

The company said it was “building the added benefits of slowing down future rates on a state-by-state basis”, taking into account the needs of lower-mile travel or accidents in line with the renewal policy. The company noted that some of them “are compensated by higher repair costs due to faster accidents and higher maintenance costs.”

Liberty Mutual declined to comment.

Phone և emails were not returned for comments from other insurers.

Traffic jams began to be reported across the country when COVID-19 closure and stay-at-home orders went into effect last spring. The companies that sell most of the policies in the US are announcing repayments or loans to drivers.

Discounts provided by insurers to reflect epidemic conditions ranged from $ 50 to $ 100 one-time refund from Acuity, 25% reduction in accounts from March 20 to May 31 from the State Farm, up to a 15% Geico loan. only when renewing from April 8 to October 7, according to the lawsuits.

“I think interest rates should have been reduced by 50-60%,” said Robert Eglett, chief adviser at Eglet Adams, a law firm that has filed lawsuits. “Unfortunately, these discounts were quite adequate.”

His comments were similar to those made by the American Consumer Federation in September, which said insurers ‘assistance was insufficient. He said state regulators failed to “prevent unexpected car insurer profits as car insurers’ claims fell.” when driving and car accidents were denied. ”

In Njada, after the governor ordered the closure of non-profit businesses, the Njada-California border, which is seen as a duplicate of tourists flocking to Las Vegas on weekends for other trips, had 66% fewer trips in April 2020 than during the same month. According to court cases, 2019, compared to the previous March, with a 60% decrease in car accidents in southern Nevada in March 2020.

Eglet, whose company represented the Las Vegas 2017 Several thousand victims of the mass shooting in a large-scale lawsuit against MGM Resorts և Nevada և opioid manufacturers և sellers, said it was too early to estimate the total dollar claims, but said that they are “in the millions.”

The Nevada Insurance Department declined to comment, citing pending litigation.

Eglett said he was not aware of any other lawsuits filed in other states that made such arguments, but predicted that more could follow as other states dropped their driving licenses and premium rates.

Illinois filed lawsuits last summer over six car insurers failing to provide enough premiums, according to the Chicago Tribune.

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