Ten class actions filed on Tuesday accuse auto insurers of failing to reduce premiums sufficiently for Nevada policyholders as traffic has slowed during the pandemic.
“With fewer people driving fewer miles, there are fewer car accidents and, therefore, fewer auto insurance claims,” the lawsuits say. “The COVID-19 pandemic has therefore led to a dramatic reduction in claims for auto insurance by Nevada residents.”
In the first part of Governor Steve Sisolak’s request to stay at home last year, traffic volumes across the state dropped to up to 70% in some areas compared to the same period last year.
Still, insurers have not “provided and charged a fair and appropriate insurance premium,” according to complaints filed by Las Vegas firm Eglet Adams and Reno’s lawyer Matthew Sharp.
“There is very little risk, or much less risk now than before COVID,” attorney Robert Eglet told the Las Vegas Review-Journal on Tuesday. “So they are making record profits on the backs of Nevada consumers that many are suffering from, who have lost their jobs, who have to stay at home or cannot work because their children are in school.”
The lawsuits filed at the Clark County District Court name State Farm, USAA, Geico, Acuity, Liberty Mutual, Farmers, Progressive, Travelers, Nationwide and Allstate. The lawsuits allege breach of contract, bad faith and violation of the Nevada Deceptive Trade Practices Act.
A spokesman for State Farm responded to the complaint by naming that company.
“The filing of an action does not substantiate the allegations of the complaint,” said the statement. “We recently learned about the process and it is premature to comment at this point.”
A spokesman for Liberty Mutual said the company did not comment on disputed issues.
Phone calls and emails to other companies were not answered on Tuesday.
Eglet cannot attribute a dollar value to the lawsuits, but he said that millions of people could be part of the class. Any Nevadan with a car insurance policy from one of 10 companies could be an eligible member of the class, he added.
Lawyers claim in complaints that the reduction in driving, accidents and claims “will almost certainly continue for the foreseeable future and as long as the COVID-19 crisis continues.”
The lawsuits seek to reimburse policyholders retroactively for premium payments, while also adjusting future rates, said Eglet, as more and more people continue to reduce vehicle travel.
“It’s like most problems in corporate America,” he said. “They don’t do the right thing until they are forced to do it. Most of the time, they are forced to do so through regulations or lawsuits. “
While some insurers reduced rates by up to 25%, lawsuits claim that this was “insufficient” to offset the reduction in driving time, distance and claims.
“They did it for public relations purposes, to look good,” said Eglet. “All along, the discount was a woefully minimal amount, far from covering what it should have been.”
Eglet represented thousands of victims of the Route 91 Harvest festival in litigation against MGM Resorts International, which owns the festival site and Mandalay Bay, where the shooter was located. A judge approved a $ 800 million settlement for victims on September 30, the day before the third anniversary of the mass shooting.
Contact David Ferrara at [email protected] or 702-380-1039. follow @randompoker on twitter.