Seattle, WA: (Oct-12-07) Pamela Coffell of Snohomish County brought a lawsuit against Allstate Insurance Co. in 2005, alleging that the company arbitrarily limited payouts of reasonable medical expenses resulting from a car accident. The charge led to a class action suit being filed over similar claims. The suit stated that the company used a billing software program that arbitrarily determined the average pay rate for a procedure in the geographical area and then paid out only 85% of the rate. Coffell stated that she had personal injury protection on her car insurance and paid premiums on the policy, believing that Allstate would cover the full cost of reasonable expenses regardless of who was at fault. Following a car accident in July 2004, she submitted her medical expenses to realize that Allstate often did not cover the full costs. She found herself left with making up the difference. Further, she claimed that the company never explained why it would not cover the costs.
In a settlement reached, Allstate Insurance Co. agreed to reimburse thousands of Washington drivers for out-of-pocket medical expenses under a tentative agreement of the class action suit. The settlement stated that those covered by the lawsuit will receive $45 and a percentage of their out-of-pocket expenses based on their coverage. [SEATTLE POST INTELIGENCER: INSURANCE PAYOUTS]
