Customers of 10 major auto insurance providers have filed a class action lawsuit in Nevada, saying that companies charged excessive premiums during the COVID-19 lockdowns.
Auto insurers like Geico, State Farm, USAA, Liberty Mutual and Farmers were among those included in the lawsuit that was filed Tuesday evening.
The suit alleges that auto insurers did not lower insurance rates in response to fewer drivers and accidents due to COVID restrictions. Customers did receive some discounts, though prosecution says these discounts were not satisfactory.
Lead council Robert Eglet of Eglet Adams law firm said that customers should have seen a reduction of between 50 and 60 percent in their insurance rates. The highest reduction offered by any company involved was 25% from March 20 to May 31.
Eglet said it was too early to estimate the total cost of all claims, but did tell news outlets that the numbers could reach “well into the millions”.
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