A federal judge in Chicago has allowed a consolidated class action accusing Allstate Corp of unlawfully tracking drivers through their cellphones to go forward, finding that the plaintiffs may pursue claims that include alleged violations of federal privacy and consumer reporting laws.
In a ruling on Tuesday, U.S. District Judge Jeremy Daniel said proposed class members can attempt to prove that Allstate monitored motorists' travel locations and driving behaviors - including trip distances, speed, acceleration, braking, phone usage and attention to the road - and then sought to monetize that information by raising premiums, denying coverage or selling the data to other insurers.
The plaintiffs also contend that Arity, the insurance group's data analytics unit, violated the federal Fair Credit Reporting Act by generating inaccurate reports about driving conduct, for example classifying people as drivers when they were passengers. According to the complaint, Arity's tracking software was incorporated into consumer-facing apps, including Fuel Rewards, GasBuddy, Life360 and Routely, which is owned by Allstate.
Judge Daniel permitted the proposed class to press claims under the Federal Wiretap Act for electronic monitoring of location and motion data and under the Fair Credit Reporting Act for allegedly erroneous reporting of driving records. The court also allowed the drivers to pursue claims under the laws of 20 U.S. states. The judge dismissed three of the 38 claims raised by the plaintiffs.
The litigation in court merges 15 private lawsuits brought against Northbrook, Illinois-based Allstate. Separately, the state of Texas filed a similar complaint against Allstate in January 2025, according to the record.
Allstate pushed back in court, arguing that the plaintiffs did not allege with sufficient specificity that the company actually captured their data or that their insurance rates increased as a result. The insurer also pointed to privacy policies that disclosed the possibility of data collection.
Insurers generally, including companies such as Progressive and the unit of Berkshire Hathaway that operates Geico, use telematics systems to monitor driving habits. Industry proponents say telematics can reward safer driving with lower premiums.
Neither Allstate nor its lawyers immediately replied to requests for comment on Wednesday. Lawyers representing the plaintiffs did not immediately respond to similar requests.
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