At the onset of the COVID-19 pandemic, many large car insurers realized that their policyholders were not driving to work, school, practices, shops and more as social distancing and shelter-in-place became the norm.Auto
In order to reflect this drop in cars on the road, large insurers began to offer rebates to customers. Liberty Mutual, State Farm, Geico, Allstate and more offered some level of premium relief for drivers.
However, in some cases, it did not appear to be enough.
Several lawsuits have been brought to light in recent weeks alleging certain insurers failed to provide “fair and appropriate” rebates and, instead, unfairly profited from high rates.
In Illinois specifically, policyholders have come for Allstate and Geico, as well as Progressive, Travelers and a few others, with six separate lawsuits filed in the last week of July alone.