$4M Allstate Settlement Ends Class Action Lawsuit Over Allegedly Excessive Homeowners’ Insurance Premiums

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Allstate has agreed to pay a $4,000,000 settlement to resolve a class action lawsuit over the insurer’s alleged “double counting” of built-in garage square footage when crafting California homeowners’ policies, causing consumers to be overcharged on their premiums.

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The Allstate class action settlement received preliminary approval from the court on September 4, 2025 and covers all California homeowners with Allstate homeowners’ insurance policies whose homes, per the insurer’s records, have a built-in garage and the policy was included in the company’s Project UIN 203019 “corrective action process,” and Allstate’s internal records show that the square footage of the home reflects an actual or potential double-counting of the garage space.

The court-approved website for the Allstate class action settlement can be found at https://www.HilarioSettlement.com/.

Allstate settlement class members with valid claims can receive a one-time cash payment proportionally approximate to their potential damages, settlement documents relay. The actual amount to which each eligible class member is entitled will be determined formulaically based on Allstate’s data of policy years affected, the location of the insured property, the number and size of garage bays, the collected premium, and any other relevant information.

Settlement class members do not need to do anything to receive their share from the class action settlement fund, as they are automatically processed within Allstate’s systems. Those who believe they may be class members but did not receive a notice should contact the settlement administrator to confirm their identity and await further instructions.

Per the settlement documents, the deadline to ask to be excluded from the settlement is November 10, 2025.

The court will determine whether to grant final approval to the Allstate settlement at a hearing on December 2, 2025. Compensation will begin to be distributed to class members only after final approval is granted and any appeals are resolved.

The Allstate class action lawsuit alleged that the company overestimated the square footage of certain California homes when calculating homeowners’ insurance policies by including built-in garages in both “total finished living area” and “total living area” counts. This caused some California homeowners to be charged excessive insurance premiums, the lawsuit claimed.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest current class action settlements.