Liberty Mutual Breaks Policy on Replacement Transportation Coverage, Lawsuit Claims

A proposed class action alleges that Liberty Mutual consistently withdraws replacement transportation coverage earlier than the time stated in its policy. The plaintiffs are a couple from Missouri and a man from Illinois. The couple, Diane and Anthony Watts, and the man, Adam Pizzitola, rented cars to use after their vehicles were deemed a “total loss” due to collision damage. According to the lawsuit, Liberty Mutual’s policy states it will cover the cost of a rented vehicle for up to 30 days as the policyholder finds a new car to buy. However, the plaintiffs allege that Liberty Mutual ceased coverage of their replacement transportation within the policy’s time constraints and before they were able to find new vehicles. The class action claims breach of contract, vexatious conduct under Missouri law and violation of insurance policies under Illinois insurance code.

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