On August 15, a class action lawsuit was filed against Allstate Insurance Company on behalf of a Madison County boat owner. The plaintiff, Trisha Bell, accused the insurance giant of alleged consumer fraud after being denied coverage for one of her watercrafts. The claim states that she was allegedly issued useless coverage, where the boat insurance policy coverage limits are equal to the customers’ deductibles, according to Legal Newsline.
The lawsuit states that Bell’s boat insurance policy through Allstate included $5,000 for boat and motor coverage. When Bell filed a loss claim, Allstate denied her coverage, claiming that her policy’s deductible was also $5,000. This means the coverage never exceeded the deductible.
The lawsuit alleges consumer fraud, arguing that Allstate misrepresented the policy as having value when, in fact, the coverage could never pay out under ordinary circumstances. Plaintiffs are seeking unspecified damages of more than $50,000, plus attorney fees. The lawsuit seeks to represent a class of Illinois boat owners who purchased similar policies from Allstate over the past three to five years, in which coverage limits match deductibles, and believe they were paying annual premiums for insurance coverage that had no value.
Fortunately, Illinois has the Illinois Consumer Fraud and Deceptive Business Practices Act, which is a statute designed to protect consumers from businesses’ deceptive acts, fraud, and unfair methods of competition in the course of trade or commerce, intended to enable the consumer to rely on it, and to provide damages resulting from the deception.
What is Consumer Fraud?
Consumer fraud encompasses various forms of deceptive and unfair practices designed to mislead consumers into undesirable purchases or financial losses. These tactics can include bait-and-switch tactics and false advertising, for example.
In the insurance industry, some typical examples of consumer fraud may include:
- Misrepresenting what a policy covers
- The failure to disclose important policy terms (such as high deductibles or limitations)
- Selling policies that appear to provide meaningful protection but actually won’t pay out under realistic situations
A class action involves one or more persons who have dealt with consumer fraud from a specific company and file a lawsuit on behalf of others who have also experienced similar situations. This lawsuit enables affected individuals to seek justice for consumer fraud when it would be too expensive for them to pursue the business’s unfair methods alone.
Do You Have a Consumer Fraud Case?
As stated above, under Illinois law, the Consumer Fraud and Deceptive Business Practices Act permits consumers to bring legal claims against businesses that engage in deceptive acts or misrepresentations. Those who were subjected to these unfair business methods may recover actual damages, attorney’s fees, and in some cases, additional penalties.
If you suspect your insurance company may be providing insufficient coverage or benefits, we recommend you:
- Review your policy: Check your coverage limit and compare it to your deductible. If they are the same, or your deductible is close to the limit, the policy may not offer meaningful protection.
- Question your policy coverage: Contact your insurance company and request an explanation of what is covered under your policy.
- Keep documentation: Every bill, premium notice, policy contract, and document can be crucial for your case if fraud is suspected.
Contact Spiros Law to Fight For Your Case Today!
This recent class action lawsuit isn’t just about discontent over insurance sums – it brings the importance of false advertising and consumer protections to the forefront. Policyholders deserve real coverage, not a price tag with no practical benefit. When you have a knowledgeable attorney on your side, it sends a clear message to deceptive businesses that dishonesty and fraud will not be tolerated.
