Allstate to Pay $25M in California Car Insurance Settlement
- StewartWood Injury Lawyers
A California judge has approved a $25 million settlement in a class action lawsuit against Allstate. The lawsuit accused Allstate of illegally setting car insurance premiums based on a customer's willingness to pay more, rather than risk factors. While some objected to the settlement, the judge deemed it fair and reasonable. Over 1.2 million Californians are part of the class action and can expect an average payout of around $13 each. Allstate maintains they did nothing wrong but agreed to the settlement and to stop using the pricing practice in California. Legal fees associated with the case will be nearly $7.8 million, which is 30% of the settlement. This is higher than the typical 25% allowed in such cases, but the judge found the extra work justified due to the extensive time invested by the plaintiffs' attorneys.