Allstate Overcharging Loyal Customers, as Class Action Lawsuit States
Illinois policyholders recently criticized Allstate’s rates, claiming that their premiums are too high based on their risk profiles. Some customers appealed to the court, stating that Allstate violated the Illinois Consumer Fraud Act.
Getting a Car Insurance Coverage
To drive in Illinois, a driver must have insurance coverage. This is because car insurance can help avoid costly and fatal incidents.
Assuming that a person is involved in a covered accident, the insured driver may be eligible for assistance with medical bills, repairs, and certain legal defense costs.
If a driver fails to buy car insurance, he will face penalties, and his license may be revoked. Some Illinois residents choose to insure their vehicles with Allstate, a well-known business.
Unfortunately, despite having the same risk profile, this insurer may cause loyal, existing customers to pay higher rates than the new ones.
The Overpricing Class Action Lawsuit
Several Illinois Allstate policyholders brought a class action lawsuit against the insurer in 2016. The lawsuit alleged that Allstate’s unreasonable pricing violated the state’s Consumer Fraud Act and other consumer rights laws.
According to the evidence presented in the Allstate pricing class action lawsuit, the company’s most loyal customers are ready to pay as much as the new ones who pose the same threat.
As a result, Allstate allows its most devoted customers—including the plaintiffs—to pay higher premiums based on the risk they pose.
The Illinois Department of Insurance, according to the plaintiffs, agrees that auto insurance premiums must be based on liability rather than other variables such as the length of time a policy has been in place.
Despite these rules, Allstate reportedly continues to obey consultancy firms’ advice and raises a policyholder’s premium rates arbitrarily based on their statistical ability to pay higher costs.
The plaintiffs claim that the insurer’s discriminatory pricing practices caused them financial harm—along with a proposed Class of similarly situated customers. The plaintiffs seek at least $50,000 in damages on behalf of themselves and a potential Class of overcharged Illinois Allstate policyholders.
The Court’s Decision
In a 2-1 decision issued in January 2019, an Illinois appeals court sided with the plaintiffs, finding that the Illinois Department of Insurance does not control Allstate’s rates. As a result, instead of getting the matter taken up by the Department of Insurance, the plaintiffs will pursue their claims in Illinois court.
The claims, according to one judge, are of unfair and misleading market practices. It is also claimed that just enrichment falls within the scope of the Illinois courts’ expertise and traditional competence.
Editor’s Note on Allstate Illinois Overprice Class Action Lawsuit:
This article is published to inform you of the latest class action lawsuit filed against Allstate due to allegations that they overcharge their already existing customers with their insurance.
If your Allstate rates were overcharged in Illinois, you are allowed to pursue legal action. Attorneys would like to meet with policyholders who have had an Allstate policy since at least June 2011.
Case Name & No.: Jeffery A. Corbin, et al. v. The Allstate Corporation, et al., Case No. unknown, in the Circuit Court of the Third Judicial Circuit for Madison County, Illinois
Products/Services: Allstate’s overcharging of insurance
Allegations: Allstate allegedly overcharged their existing customers for insurance
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