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Lawsuits have been filed against car insurers over epidemic rates

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

The lawsuits allege that some insurers provided 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 customers against 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 Matt Hartwig, spokesman for the United States Department of State, 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.

Liberty Mutual declined to comment.

Phone-emails requesting comment from other insurers on Tuesday were not immediately returned.

Traffic crashes were reported across the country when orders to close COVID-19 and stay at home began last spring. Companies that sell most of their policies in the United States are announcing repayment or lending to drivers.

Discounts provided by insurers to reflect the epidemiological conditions ranged from $ 50 to $ 100 one-time refund from Acuity, 25% reduction in accounts from March 20 to May 31 from State Farm to 15% loan from Geico. 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 are 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 because car insurance fell when driving and car accidents have been 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 producers 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 the pending lawsuit.

Eglett said he was not aware of any other lawsuits filed in other states that provide similar arguments, but predicted that more could follow as other states fell into the’s premium terrain.

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



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