Auto Insurance Rate Discrimination Settlement
U.S. District Court, District of Maryland
Settlement Fund
$67.0M
$67,000,000.00 total
Attorney Fees
$16.8M
25.0% of fund
Per Member Payout
$56.40
890,000 class members
National Shield used zip code and credit-based pricing that disproportionately charged higher premiums in minority neighborhoods. The $67M settlement with 25% attorney fees provides roughly $56.40 per class member. While the fee structure is more reasonable than most, the payout still represents only a fraction of the estimated $180 average overcharge per policy over the class period.
Fairness Assessment
6.2
Mostly Fair
Red Flags
Reasonable fee percentage at 25%
Payout still below average overcharge per policy