Nevada drivers are suing insurance companies over pandemic rates

Ten class action lawsuits filed Tuesday accuse auto insurance companies of not cutting premiums enough for Nevada policyholders because traffic dropped during the pandemic.

“With fewer people driving fewer kilometers, there are fewer car accidents and therefore fewer claims for car insurance,” the suits state. “So the COVID-19 pandemic has dramatically reduced the number of auto insurance claims by Nevada residents.”

In the first part of Governor Steve Sisolak’s housing assignment last year, statewide traffic volumes in some areas dropped as much as 70 percent from the same period a year earlier.

Yet insurance companies “have not provided and charged a fair and appropriate insurance premium,” according to the complaints filed by the firm Eglet Adams and Reno attorney Matthew Sharp, in Las Vegas.

The lawsuits filed in the name of State Farm, USAA, Geico, Acuity, Liberty Mutual, Farmers, Progressive, Travelers, Nationwide and Allstate have been filed in Clark County District Court. The lawsuits allege breaches of contract, bad faith with policyholders, and violations of Nevada’s Deceptive Trade Practices Act.

Lawyers also argue in the complaints that less driving, accidents and claims “will almost certainly continue for the foreseeable future, and as long as the COVID-19 crisis continues.”

While some insurers cut rates by 25 percent, the lawsuits claim this was “insufficient” to match the reduction in driving time, distance and claims.

This is a story in development. Check back regularly for updates.

Please contact David Ferrara at [email protected] or 702-380-1039. To follow @Rijkswaterstaat on Twitter.

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