Car insurance companies are an essential resource for drivers. However, people also rely on them for transparency and privacy. Unfortunately, Allstate, one of the most popular insurance companies, has agreed to settle a class action suit over the latter of the two. Of course, the company hasn’t admitted to any wrongdoing, but it’s willing to fork over millions of dollars. 

Allstate is settling a class action suit

Allstate is no stranger to a class action suit. However, according to Top Class Actions, the car insurance provider has agreed to settle a new one over years of alleged privacy violations. Specifically, the company has been accused of calling its customers and recording the phone calls. This is said to have occurred between February 1, 2022, and the end of that year. Notably, the customers did not consent to the recordings. 

The reason for the class action suit is that this action violates California’s Invasion of Privacy Act. As mentioned, Allstate has not admitted any wrongdoing. However, it has agreed to pay out a total of $3.3 million to impacted customers for the violation. The amount each person receives will depend on the number of verifiable claims filed. This means there is no estimate for how much customers will receive. 

Regarding the lawsuit, drivers have until October 30 for exclusion and objection. Notably, this settlement amount hasn’t been approved yet. That hearing is scheduled for January 10, 2025. Allstate customers have until October 30 of this year to submit a claim. For reference, the lawsuit’s name is Tobajian v. Allstate Insurance Company. 

For more reading on Allstate, check out this recent article about another lawsuit involving the company.