Hagens Berman: Judge Certifies Class of Arizona Motorists in Massive Allstate Insurance Benefits Class-Action Lawsuit

Business Wire

Class suit claims Allstate withheld thousands in insurance benefits for hundreds of Arizonans injured in auto accidents

PHOENIX--(BUSINESS WIRE)--
Attorneys at Hagens Berman representing Arizona motorists against Allstate announced a major victory in a class-action lawsuit on behalf of Arizonans who were seriously injured or lost family members in auto accidents since 2016. The lawsuit claims Allstate unlawfully denied significant benefits to thousands of Arizona claimants.

On June 11, 2025, Judge Krissa M. Lanham for the U.S. District Court for the District of Arizona issued an order certifying a class of Allstate policyholders for trial on whether Allstate shorted them on uninsured motorist coverage. The suit claims that when an insurance policy covers multiple vehicles, Allstate was obligated to multiply the amount of coverage by the number of vehicles and failed to do so.

“The court’s ruling is a huge victory for thousands of Arizona policyholders who have unknowingly been denied full benefits under their Allstate insurance,” said Rob Carey, partner at Hagens Berman’s Phoenix office leading the case against Allstate. “We hope to assist as many Arizona motorists as possible in seeking compensation for Allstate’s wrongs.”

Arizona residents who settled an uninsured motorist or underinsured motorist bodily injury claim in AZ in or after 2015 may be entitled to compensation. According to attorneys, even if motorists were told that they received a maximum payout of uninsured motorist (UM) or underinsured motorist (UIM) benefits, attorneys at Hagens Berman may still be able to secure a significant additional amount, even if the insured has settled the claim with legal assistance already.

According to the lawyers for the insured, Arizonans who settled UM/UIM claims involving accidents as far back as 2016 may be affected. Learn more about your rights and potential compensation.

Arizona Allstate UM/UIM Benefits Explained

The lawsuit was originally filed in 2023 and claims that Allstate’s has breached its insurance policies and acted in bad faith in the way it calculates UM/UIM benefits, leaving Arizona claimants receiving less than what they are owed. The daughter of the lawsuit’s named plaintiff was seriously injured in 2021 in a crash with an uninsured non-party in which she suffered more than $100,000 in damages. She was insured under a policy covering multiple vehicles, each with $100,000 in coverage. But instead of multiplying the coverage limit by the number of vehicles as plaintiffs claim is required, Allstate paid only $100,000.

As the judge’s order explained, “[A]n insured might obtain a policy covering two vehicles that provides $50,000 of UI/UIM coverage ‘per person.’ An insured wishing to stack coverages would claim the presence of a second vehicle provides ‘a separate, additional [UI/UIM] coverage’ that can be combined, increasing the total coverages available from $50,000 to $100,000.” Dorazio had a policy with Allstate covering four vehicles with “per person” UI/UIM limits of $100,000, according to the judge’s order. “Despite knowing the claim exceeded the single coverage limit and that stacking was sometimes offered, Allstate did not disclose that stacked coverages were possible,” Judge Lanham wrote. “It instead paid only the single coverage limit of $100,000.”

The order draws upon a 2023 ruling where Hagens Berman and its team convinced the Arizona Supreme Court that unless auto insurers comply with certain specific, established requirements of Arizona law, they must stack UM/UIM benefits when a single insurance policy covers multiple vehicles. Plaintiffs claim that Allstate failed to meet these requirements for members of the class.

Under Judge Lanham’s order the class would include those persons who had an Allstate policy or policies covering more than one vehicle, were injured in a covered accident, and were paid the UM/UIM coverage limit as if there were only one insured vehicle. Even if your case was before 2016 or after this ruling, Hagens Berman may be able to help recover significant benefits.

According to the lawsuit, Allstate is one of the largest auto insurers in the United States, with premiums paid to the company approaching $30 billion annually. Find out more about the class-action lawsuit against Allstate on behalf of Arizona claimants.

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights complex litigation law firm with a tenacious drive for achieving real results for those harmed by corporate negligence and fraud. Since its founding in 1993, the firm’s determination has earned it numerous national accolades, awards and titles of “Most Feared Plaintiff’s Firm,” MVPs and Trailblazers of class-action law. More about the law firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.