Worst Auto Insurance Companies Based on Class Action Lawsuits

Worst Auto Insurance Companies Based on Class Action Lawsuits

Overview of car insurance company lawsuits:

  • Who: Class action lawsuits have recently been filed against the likes of auto insurance companies such as Progressive, Geico and State Farm.
  • Why: Claims against the auto insurance companies include allegations of privacy violations, unwarranted rate adjustments and unfairly reduced benefits.
  • True: Class action lawsuits have been filed against health insurers across the country.

Auto insurance is an expense every American driver must pay to stay legally on the road.

Although there are occasional complaints, having good insurance coverage can make a significant financial difference in the event of an accident or other unforeseen event.

However, auto insurance companies are also a known target for class action complaints.

From claims of privacy violations to unjustly reduced total payouts and unwarranted rate adjustments, among other auto insurance companies, are often on the defensive.

With that in mind, Top Class Actions takes a look at the auto insurance companies, which, according to recent class action lawsuits and settlements, are making them the worst.

Progressive, State Farm, AmFam Net Worth Total Loss Claims

Progressive was confronted in October last year with allegations that it, along with its vehicle appraiser Mitchell International, had made “baseless adjustments” to lower the assessed value of vehicles, which were considered a total loss

The consumer behind the claim claimed Progressive and Mitchell “random deductions” created when assessing the value of total loss vehicles.

That same month, a separate class action lawsuit was filed against Progressive reflecting claims that the company was applying “baseless” modifications to total loss vehicles.

The plaintiffs argued that Progressive used a method called “projected sales adjustments” to: decrease the value of the vehicle by applying an “assumed discount” to what would be the demand for a comparable vehicle.

Similarly, in October last year, State Farm also faced claims that it had made “baseless” adjustments to the value of vehicles it found to be total loss.

The plaintiff in that case alleged that State Farm intentionally applied the adjustments to save money and has breached its contractual obligations to its customers by doing so.

Also in October, State Farm was accused of “systematically underpaying” drivers who… receive compensation for total loss vehicles.

In that case, the consumer argued that State Farm was breaking the law and passing on underpaid drivers do not include sales tax in the amount of the compensation.

American Family Mutual Insurance also faced claims in October last year that it undervalued vehicles during total loss claims

Likewise, American Family is accused of instructing its third-party supplier to reduce the value of a total loss vehicle by adding a “sale price reduction” to the retail price of comparable vehicles.

American Family already had agreed to pay $5.7 million last April to resolve previous claims it had made when determining the value of cars at total loss.

Meanwhile, Liberty Mutual was in February able to evade claims the insurer had made adjustments to the condition to reduce the amount it would have to pay for a vehicle claim.

AmFam charged with negligence, Geico with charging ‘excessive’ premiums

Last June, a separate class action lawsuit was filed against American Family over claims the company had handled the information carelessly of customers who provided their driver’s license information when applying for a car insurance quote.

Consumers claimed that a prefill feature allowed third parties to gain unauthorized access to their driver’s license data.

Also in June 2021, Geico was faced with claims it had charged its customers too high premiums during the pandemic.

Consumers argued that Geico was wrong to raise premiums, despite there being a “huge” drop in car accidents due to fewer drivers on the road due to pandemic measures to stay at home.

PEMCO, USAA, Progressive Agree to Settlement to Resolve Claims

PEMCO Insurance Co. and PEMCO Mutual Insurance Co. agreed to pay $14.1 million last year to resolve claims that underpaid policyholders on their total loss vehicle claims.

Consumers had accused PEMCO Insurance of applying inappropriate “typical bargaining deductions” when determining the value of a total loss vehicle.

USAA Car Insurance, meanwhile, agreed to a settlement in March 2021 to resolve claims it had has made improper reductions in the amount due for personal injury protection claims

The policyholder claims related to USAA’s use of a “computerized billing review process” that the insured used to determine what reasonable health care reimbursements would be for related treatments in an individual geographic area.

Going back to 2016, New Mexico Progressive Car Insurance agreed to a settlement to resolve claims from the insurer invalid selection forms used for uninsured and underinsured coverage for motorists.

Has your car with total loss been appraised at a lower amount than you expected? You could be eligible for participate in a free survey of a total loss valuation process† In addition, Missouri residents who may have undergone mismatches by Liberty Mutual or Safeco participate in a total loss appraisal claim class action lawsuit investigation and claim compensation.

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Please note: Top Class Actions is not an administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug damage lawsuits, and product liability lawsuits. Top Class Actions does not process claims and we are unable to advise you on the status of a class action settlement claim. You should contact the settlement administrator or your attorney for updates on your claim status, claim form, or questions about when payments are expected to be sent.

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