Arizonans can proceed with class action lawsuit against Allstate Insurance, judge says

A federal judge has approved a class of Arizonans hurt in vehicle accidents while holding Allstate insurance policies.

Those Arizonans argue in a lawsuit the company did not pay fully the benefits they deserved.

Allstate did not reply to a request for comment. The insurer can appeal class action certification in the case over stacked benefits.

Plaintiff’s attorney John DeStefano said for years Allstate should have paid customers their coverage limit multiplied by the number vehicles on a single policy, after being hurt in accidents by other drivers with little or no insurance of their own.

“These lawsuits will make a meaningful difference, especially to people who were already injured and underpaid by tens, sometimes hundreds of thousands of dollars,” DeStefano said.

He says his firm represents Arizona consumers in cases against other insurance companies with similar allegations.

“We’re hopeful companies will see the writing on the wall and change their practices. So that going forward, they won’t have to face these kind of lawsuits. And their customers will get the benefits that they’re entitled to,” DeStefano said.