Allstate Pays $14 Million Settlement to Florida Policyholders

An ongoing class action lawsuit against Allstate Insurance Co. has set up Florida policyholders to receive a portion of a multi-million-dollar settlement.

The settlement came about due to a recent Broward Circuit Court ruling that calls for insurers to apply a deductible to a client’s full bill. The plaintiffs in the case are policyholders who submitted a claim for medical bill reimbursement under PIP no-fault insurance coverage and were given a reduced amount by their insurance company.

How Did This Happen?

A plaintiff named Gail Pierce served as the representative of the class filing the lawsuit, named Pierce v. Allstate Insurance Company, et al. According to the complaint, Pierce’s son, who was covered by an Allstate auto insurance policy, was involved in a car wreck. The policy included a $500 deductible that applied to no-fault benefits claims. The son required medical treatment, including prescribed sessions with a chiropractor. Pierce was sent the bills, but when she filed a claim with Allstate to get the costs reimbursed, the insurance company reduced the bill by a covered amount. Allstate then applied the deductible to that reduced amount instead of paying Pierce the full cost of the medical bills. Pierce decided to bring this issue to court and was joined by others who were subjected to the same treatment by Allstate.

However, this issue had already been ruled on before. A similar case regarding Progressive Select Insurance had made it to the Florida Supreme Court, which ruled that insurance companies must pay the full amount of a bill charged to an insurance policy’s deductible. Since the ruling was already in place, Allstate has agreed to pay the settlement requested by the lawsuit.

How to Join the Class Action Against Allstate

If you submitted a claim for medical bill payment under PIP coverage under an automobile insurance policy in Florida and were given a reduced amount, you may be entitled to compensation from the Allstate settlement.

The class action regards claims issued by the following insurance companies in Florida:

  • Allstate Insurance Co.
  • Allstate Indemnity Co.
  • Allstate Property & Casualty Insurance Co.
  • Allstate Fire & Casualty Insurance Co.
  • Encompass Indemnity Co.
  • Encompass Floridian Insurance Co.
  • Encompass Floridian Indemnity Co.

Together, these insurance groups have paid almost $14 million in settlements so far. The lawsuit remains ongoing.

If you believe that you may have a claim, you can join the lawsuit as a class member. To do so, you must submit a completed and signed claim form by November 13, 2020. Visit the official class action website to download the form and learn more about the lawsuit.

Are you looking to join this or another class action lawsuit in Florida? Our Bonita Springs class action lawyers can help. If you have questions or seek representation, contact us today for a free, no-obligation consultation.