Class action alleges Allstate subsidiary shorted auto claimants
The proposed class includes individuals in Kansas covered by Safe Auto whose vehicle damage exceeded their value.
A class action lawsuit has been filed against a subsidiary of Allstate Insurance Co. that alleges the insurer underpaid policyholders for totaled vehicles whose damage exceeded their value.
This complaint was surfaced on Law.com Radar.
According to the complaint, if a motor vehicle is unable to be repaired or replaced, it is classified as a “total loss,” which allows defendant Safe Auto Insurance Group Inc. to settle a claim through actual cash value of the car, the complaint claimed.
Under Kansas law, insurers are required to include sales tax and regulatory fees of the vehicle in the actual cash value, the complaint said. The plaintiff, Dawn Berruecos, claimed these purchasing fees were fulfilled by the defendant.
“[The] plaintiff brings this lawsuit individually and on behalf of all other similarly situated insureds who suffered damages due to Safe Auto’s refusal to pay [actual cash value] sales tax and regulatory fees for total-loss vehicles,” the complaint said.
The proposed class includes individuals in Kansas under Safe Auto coverage whose actual cash value for their totaled vehicle did not include purchasing fees, the complaint detailed.
The plaintiff alleged breach of contract and violations of Kansas law. The class action was filed in Kansas 18th Judicial District Court in Sedgwick County.
Counsel for the defendant has not appeared yet. Allstate media relations did not respond to a request for comment. Counsel for the plaintiff, Randall K. Rathbun of Depew Gillen Rathbun & McInteer, did not respond to a request for comment.
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Read the complaint:
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