Cases & Investigations
Allstate Insurance Company Consumer Litigation

Class: All citizens of New York asserting insurance claims pursuant to an Allstate private passenger vehicle policy who, from the earliest allowable time within the statute of limitations to the present, received a first-party or third-party total loss settlement or settlement offer based in whole or in part on the price of comparable vehicles reduced by a “condition adjustment.”
 
Wolf Popper LLP serves as co-counsel for the plaintiffs and a proposed class of New York-based drivers in litigation against Allstate Insurance Company, involving allegations that Allstate underpays total loss vehicle claimants by hundreds or even thousands of dollars.  When a claim for a total loss vehicle is filed, New York law requires insurers to calculate the “actual cash value” of the loss vehicle by comparing the totaled car—just prior to the accident—to at least three similar cars for sale in the local area.  Thereafter, auto insurers are to offer the actual cash value to claimants to enable them to replace their totaled cars.  Allstate contracts with a third-party, CCC Intelligent Solutions, Inc., to perform that calculation and provide a settlement figure to Allstate.  However, CCC arbitrarily and unfairly reduces the values of the comparable vehicles by applying a “condition adjustment” to the values of those cars.  The condition adjustment results in substantial savings for Allstate but underpayments to consumers, which makes it difficult for them to replace their lost vehicles. 
 
Three New York consumers represent the proposed class, each of whom Allstate underpaid when they filed their total loss claims following a serious car crash: Robert Kronenberg was underpaid $610 when his 1999 Toyota Camry was totaled on February 23, 2018.  Jonathan Boriotti was underpaid $928 when his 2017 Hyundai Sonata SE was totaled in an accident on May 14, 2020.  Kevin Lukasik, who is a licensed insurance adjuster, was underpaid $405 when his 2004 Ford Focus was destroyed in an accident on January 4, 2018.  The experiences of these plaintiffs is similar to other New York car owners who filed total loss claims with Allstate. 
 
In late 2023, Plaintiffs moved to certify the above class in the Eastern District of New York.  Plaintiffs set forth class-wide evidence that Allstate, in coordination with CCC Intelligent Solutions, Inc., systematically underpaid total loss vehicle claimants.  Plaintiffs further allege that they have suffered injuries due to Allstate’s conduct and seek monetary damages, injunctive and/or other equitable relief, declaratory relief, restitution and/or disgorgement of profits. 
 

Chet B. Waldman – (212) 451-9624
Patricia I. Avery – (212) 451-9619
Timothy D. Brennan – (212) 451-9616
Email: outreach@wolfpopper.com