Second auto insurer settles diminished value claims after Georgia court

ATLANTA - Allstate Insurance Company has agreed to pay about $59 million to settle a class-action lawsuit filed by Georgia auto policy customers over the company&#39;s failure to pay for the diminished value of their vehicles after accidents. <br> <br> The Allstate settlement announced Wednesday covers collision or comprehensive policy holders who filed a valid claim for damages incurred between January 18, 1997, and December 5, 2001. <br> <br> Allstate spokesman Michael Trevino said each will receive $150-$215 per claim. About 274,000 claims were filed during the period. <br> <br> The settlement was prompted by a Georgia Supreme Court ruling in November in a similar case against Illinois-based State Farm Mutual Automobile Insurance Company. Earlier this month, State Farm agreed to pay $250 million to compensate up to 700,000 Georgians. <br> <br> After the Supreme Court ruling, Insurance Commissioner John Oxendine said all insurers operating in Georgia must obey the ruling. <br> <br> A Muscogee County Superior Court judge has scheduled a March 15 hearing on the settlement.