Allstate California $25,000,000 Auto Rating Settlement

Allstate Insurance Company has agreed to pay $25,000,000 to settle a class action lawsuit for alleged violations of California’s Unfair Competition Law, California’s False Advertising Law, and California Insurance Code. This settlement benefits Allstate auto insurance policyholders in California who were affected by the alleged improper use of price optimization in calculating premiums.

Who Benefits?: All current and former Allstate California auto insurance Primary Policy Holders whose total premiums were calculated, at any time on or after July 1, 2016, based on Allstate’s selection of a rating factor relativity exceeding both the Current and Indicated rating factor relativities for certain coverages in connection with the Years Licensed and/or Multipolicy rating factors.

How much can I get?: Each eligible Settlement Class Member will receive an estimated payment of $12.40.

Important Dates

• Fairness Hearing: May 22, 2024
• Deadline to File a Claim: Payments or credits will be automatically issued to eligible class members, so no claim filing is necessary.

Can I Claim an Award?

To be part of the Settlement Class, you must be a current or former Allstate California auto insurance Primary Policy Holder whose premiums were calculated based on specific rating factor relativities exceeding both the Current and Indicated rating factor relativities for certain coverages. This includes those whose premiums were determined based on licensure for 29 or more years with Comprehensive coverage, licensure of 34 or more years with Collision coverage, and those who had a condo, life, and/or mobile home policy in addition to their auto policy but did not have a renters policy.

Primary Policy Holders are defined as individuals with an ownership interest in and financial responsibility for a Policy or Policies during the Class Period from July 1, 2016, through September 30, 2022. There is one Primary Policy Holder for each Policy issued by Allstate, also known as the first named insured on each Policy issued by Allstate. Other persons insured under a Policy are not Primary Policy Holders.

• Tier 1: Primary Policy Holders whose premiums were determined based on licensure for 29 or more years and had Comprehensive coverage.
• Tier 2: Primary Policy Holders whose premiums were determined based on licensure of 34 or more years and had Collision coverage.
• Tier 3: Primary Policy Holders who in addition to their auto policy had a condo, life, and/or mobile home policy and did not have a renters policy.

Who is Excluded?

Excluded from the Settlement Class are officers, directors, and employees of Allstate, the judge overseeing the proposed Settlement and the judge’s immediate family, and all Primary Policy Holders who make a timely election to be excluded.

What Awards Can Class Members Claim?

The Settlement provides a total amount of $25 million to be distributed among Settlement Class Members. After deducting attorneys’ fees, costs, Settlement Administration Costs, and a Service Award, the remaining Net Settlement Amount will be divided equally among approximately 1,293,698 Settlement Class Members, resulting in an estimated payment of $12.40 per member.

Settlement Class Members who are “Remaining Current Policy Holders” will receive a credit to their policy. Those who are “Non-Remaining Current Policy Holders” or no longer Policyholders will receive their payment by paper check, unless they elect to receive a digital electronic payment.

• Remaining Current Policy Holders: Will receive a credit to their policy.
• Non-Remaining Current Policy Holders: Will receive their payment by paper check or digital electronic payment.

Is Proof Required to Claim the Reward?

No proof is required to claim the reward. Eligible Settlement Class Members will automatically receive their payment or policy credit once the Settlement is approved by the Court and the Effective Date passes.

How to Claim Your Award

If you received a Notice by email or in the mail, you will automatically receive a Settlement Class Member Payment or Policy credit once the Settlement is approved. If you are a former Allstate customer or choose to cancel your policy prior to issuance of a credit, you will receive your payment as a check unless you elect to receive a digital electronic payment. You may elect to receive a digital payment online at .

If you did not receive a Notice and believe you are a Settlement Class Member, contact the Settlement Administrator at the provided website or by calling (833) 383-4978.

$25,000,000 Settlement Fund Breakdown

The settlement amount of $25 million will be used to make payments or give Policy credits to Settlement Class Members, as well as to pay Class Counsel’s attorneys’ fees, costs, Settlement Administration Costs, and a Service Award. The estimated amounts for these deductions are $7,500,000 for attorneys’ fees, $400,000 for costs, $1,057,030 for Settlement Administration Costs, and $5,000 for the Service Award.

After these deductions, the remaining Net Settlement Amount of approximately $16,037,970 will be divided equally among the Settlement Class Members.

Why is There a Class Action Settlement?

This class action was initiated because Allstate was alleged to have violated California’s Unfair Competition Law, California’s False Advertising Law, and California Insurance Code by improperly using price optimization as a factor in calculating premiums. Price optimization refers to the practice of adjusting premiums based on a policyholder’s willingness to tolerate a price increase compared to other policyholders.

The Court did not decide in favor of either party. Instead, both sides agreed to settle the case to avoid the cost and risk of a trial. The proposed Settlement does not imply that any law was broken or that Allstate did anything wrong. The Settlement is considered to be in the best interest of the Settlement Class Members given the uncertainties and potential delays associated with continued litigation.

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