On February 23, 2021, The Law Firm of Eglet Adams and Reno Trial Lawyer Matthew L. Sharp filed 10 class action lawsuits in Clark County District Court that seek class wide relief for the Defendant insurance companies’ failure to provide and charge a fair and appropriate insurance premium and failure to provide premium reductions to its Nevada automobile insurance policyholders amid the COVID-19 pandemic.
The lawsuits have been filed against State Farm, USAA, Geico, Acuity, Liberty Mutual, Farmers, Progressive, Travelers, Nationwide and Allstate.
The suits allege that Nevadans faced substantial life changes beginning on March 1, 2020 due to the COVID-19 pandemic, which included driving less frequently and driving shorter distances. This resulted in less traffic, fewer automobile accidents and a dramatic reduction in automobile insurance claims.
The complaints state that in April of 2020, the vehicular traffic at the Nevada-California border was 66% lower than it was in April 2019 and that traffic volumes decreased between 60-70% compared to the same time periods in 2019. In addition to lower traffic volumes, there was also a 60% reduction in automobile accidents in Southern Nevada in March 2020 when compared to the previous year.
The lawsuit further alleges that this significant drop in driving, collisions, and automobile insurance claims will continue for the foreseeable future and for the duration of the pandemic.
The class action lawsuits claim that the insurance providers charged their insureds excessive premiums as a result of the providers’ failure to accurately calculate the cost of premiums based on their insureds’ decreased driving routines and the significantly reduced quantity of automobile accident claims due to the pandemic. Under Nevada Law, insurance providers may not charge excessive premiums.
The lawsuits further allege that the insurance providers provided paltry credits and refunds to their insureds that are inadequate given the excessive premiums that Nevadans have been paying during the pandemic.
The lawsuits bring forth five causes of action:
- Declaratory Relief Pursuant to NRS 30.040
- Breach of Contract
- Breach of the Covenant of Good Faith and Fair Dealing (Contract)
- Bad Faith
- Violation of Nevada’s Deceptive Trade Practices Act
The lawsuits seek compensatory and punitive damages, all attorney fees and costs and any further relief that the Court deems just and appropriate.