Class Action Accuses Erie Insurance of Overcharging Auto Policyholders During Pandemic

CHICAGO — A putative class action accuses Erie Insurance Exchange of charging “grossly excessive” auto insurance premiums during the COVID-19 pandemic, when traffic, auto accidents and resulting claims decreased as Illinois residents drove less frequently and for shorter distances.

In a complaint removed to the U.S. District Court for the Northern District of Illinois on Sept. 16, EBCF Enterprises Inc. alleges Erie “recognized a windfall in premiums,” yet gave its policyholders a woefully inadequate refund of only 5 percent of annual premium.

That refund “compared unfavorably” to the relief offered by other Illinois auto insurers and “falls short of …