A class action suit in Chicago's Cook County Court charges that Direct Auto Insurance targets low-income minorities for its "worthless" car insurance policies, profiting from the premiums but refusing to honor claims, Courthouse News Service reports.
"Direct Auto Insurance Company developed a business strategy wherein the company planned to secure customers by offering auto insurance at premiums that were substantially lower than its competitors and market rates," said lead plaintiff Norbert May in her complaint.
"Direct Auto Insurance Company intentionally targeted consumers with low to moderate incomes, including a high percentage of African-American and Hispanic individuals, who did not have the financial ability to hire legal representation to defend them against defendant's predatory practices," May alleged.
The suit charges that Direct Auto's policy of filing meritless declaratory judgment actions on the basis of misrepresentations in policy applications shows that the insurance company never intended to honor any claims on the policies it issued.
May seeks class certification and damages for fraud, breach of contract, and alleged violations of the Illinois insurance code.Â
May is represented by Edward McCauley with Kelleher & Buckley in North Barrington, and Daniel Konicek with Konicke & Dillon in Geneva.
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