Allstate Corporation Will Pay Out $10 Million Settlement For Diminished Value Lawsuit
An American insurance company, Allstate Corporation, was charged with a $10 million settlement by their policyholders after they have allegedly failed to cover “diminished value” losses obtained by their customers from accidents.
Plaintiffs argue that even after repairs, their cars obtain permanent diminished value once it has incurred damages from accidents with an uninsured motorist.
The losses that they attain is something that Allstate did not cover despite being insured under them.
Complainants assert that Allstate insists on excluding diminished value claims, thereby breaching their policy, which does not include the said exclusion.
According to Bankrate, a personal finance company, vehicle owners can make insurance claims for loss due to accidents, especially if they are not at fault.
However, policyholders are usually unaware of this benefit, and insurance companies do not inform or pay them out.
The class action lawsuit has been finalized after five years in court. Allstate has acknowledged paying a $10 million settlement to its affected policyholders.
The settlement against Allstate aims to represent over 14,000 claims filed by policyholders in Washington. The expected average payment per vehicle is $500.
This value may also increase if the uninsured motorist was at fault during the accident.
Class Member Eligibility
Policyholders are eligible to join the class action investigation if the following conditions apply to them:
– Vehicle was involved in a car accident with the last five years with an uninsured motorist
– Vehicle was not entirely destroyed
– Vehicle’s market value diminished after repairs
– Diminished value losses were not reimbursed to the customer
Laws on Diminished Value Claims
While most states permit policyholders to file for diminished value claims, there are no natural laws that govern them. Therefore, consumers depend on previous lawsuits with similar cases.
As of writing, filing claims for diminished value is permitted in more than half of all the states.
Among them, Georgia and North Carolina are the most favorable to individuals who file claims for diminished value.
Despite this, policyholders find it difficult to get paid since no law requires insurance companies to deliver it.
Nationwide Diminished Value Claims Investigation
Although Allstate is in the hot seat now due to diminished value claims, they are not the only insurance company that does not pay individuals for the said claims.
Many major insurance companies have also been reported for allegedly denying to pay out diminished value claims.
Individuals who have been denied of the said claim assert that insurance companies were not explicit about the type of documentation needed to make a claim.
Some individuals advise that claimants may conduct a diminished value appraisal to support their claim.
This is a car appraisal conducted by an expert, which can be used as evidence. However, this may cost customers up to $400.
A nationwide investigation is currently being conducted to all insurance companies to check for similar violations regarding dismissed value losses.
Individuals who have not been paid of their claim may join the investigation to be included for possible compensation.
Editor’s Note On Allstate Settlement:
This article is published to inform you of the latest Allstate Settlement over a class action lawsuit for diminished value claims in insurance.
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