Insurance Companies Sued Over Pandemic Rates

Feb. 25, 2021
The class action suits filed this week allege 10 major insurers overcharged customers during the COVID-19 pandemic.

Feb. 25, 2021—Class action lawsuits were filed this week in Nevada against major car insurance companies, alleging they overcharged customers during the pandemic while driving and crashes were down.

The Associated Press reports the suits, filed on behalf of Nevada insurance customers, are against State Farm, USAA, Geico, Acuity, Liberty Mutual, Farmers, Progressive, Travelers, Nationwide, and Allstate.

The AP report says the lawsuits note that insurers offered discounts to customers during the pandemic, though such discounts did not offer “any meaningful relief that actually reflects the reduction in cars on the road and reduced driving during the pandemic,” as stated in the court filings.

State Farm issued a statement regarding the suit, as reported by the AP, “The filing of a lawsuit does not substantiate the allegations within the complaint. We’ve recently learned about the filing, and it is premature to comment at this time.”

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FenderBender Staff Reporters

The FenderBender staff reporters have nearly four decades of combined journalism and collision repair experience.

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