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In response to mandatory shelter-in-place guidelines and the closure of non-essential businesses and the inevitable drop in cars on the road, several large personal auto insurance companies began to offer rebates to its insureds. Many of these companies are now facing suits for alleged “woefully inadequate” COVID-19 auto insurance discounts and instead, unfairly profited from high rates.

Cases have been filed in Illinois against Allstate, Geico, Progressive, Travelers and others. Policyholders allege that the relief offered during the pandemic did not go far enough when accounting for the drop in claims that the insurers saw during the same interval. Statistics indicate that miles driven by motorists dropped by nearly two-thirds in March and April in some states.

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