Airbnb Insurance Class Action: Hidden Fees and Inflated Premiums Alleged

A new class action lawsuit alleges that two companies providing insurance policies for Airbnb are hiding fees within insurance quotes, artificially inflating premiums and misleading consumers. 

The proposed class action, filed by two Airbnb users in California, targets Airbnb Travel Insurance Agency LLC and Generali Assicurazioni Generali S.P.A.

Are Airbnb Insurance Quotes Hiding Hidden Fees?

The lawsuit centers on an "assistance fee" tacked onto insurance quotes for Airbnb stays, Legal Newsline reported. Plaintiffs Jessica Hawley and Kiley Krzyzek argue this fee, covering non-insurance services like customer service and roadside assistance, is illegally bundled with premiums under California law. Consumers were reportedly unable to decline these services, even if unwanted.

Hawley and Krzyzek contend this practice violates California regulations mandating pre-approval of insurance premiums by the Department of Insurance. By including mandatory fees for non-insurance services, the companies allegedly engaged in deceptive and unlawful business practices.

Airbnb Fee Breakdown: What Are You Really Paying For?

Airbnb itself also charges consumers a range of fees when they book a stay through the website. Recent changes have meant all those fees must be transparent, and, according to the company, they typically include:

• Airbnb service fee, which provides 24/7 support 
• Cleaning fee charged by some hosts 
• Extra guest fee for additional guests 
• Pet fee
• Security deposit
• Value Added Tax for guests who live in certain countries
• Local taxes based on the location of the host's place

Airbnb's Legal Troubles: A History of Fee Disputes

Airbnb has faced previous legal over its fee structure, in 2021 paying $6 million in a class action settlement in which consumers alleged the company service fees saw guests paying a higher than what was displayed at the first steps of booking.  

Meanwhile, Australian travelers were awarded $15 million in a settlement after the company charged them in US dollars, without making that apparent on the site, The Guardian reported.

On the flip side, Airbnb sued Boulder in late 2023 for taxing the service fee it charges guests and hosts. The lawsuit was in response to a ruling in the Boulder Municipal Court, which required Airbnb to pay $415,000, approximately $150,000 of which was interest and penalties, for unpaid taxes on fees from 2018 and 2019, The Denver Post reported.

In the Airbnb insurance provider class action lawsuit, Hawley and Krzyzek are bringing this action on behalf of a class of California consumers seeking to hold Airbnb's insurance providers accountable for their alleged deceptive practices in marketing and selling travel insurance policies across various online platforms.

The plaintiffs are demanding compensatory, statutory, and punitive damages, along with injunctive relief and a jury trial to address these alleged unlawful practices.

Case Details

• Lawsuit: Hawley et al v. Airbnb Travel Insurance Agency LLC et al
• Case Number: 3:24-cv-03142-TLT
• Court: U.S. District Court for the Northern District of California

Plaintiffs' Attorneys

• Neal J. Deckant, Brittany S. Scott, and Joshua R. Wilner (Bursor & Fisher, P.A.)