California orders new ‘stimulus checks’ for auto insurance

0

CALIFORNIA has ordered auto insurers to provide larger reimbursements because they have benefited from increased profits during the coronavirus pandemic.

Between March and September of last year, insurers reimbursed an average of 9% of premiums, according to the California Insurance Department.

1

You may be able to get a refund if you contact your insurer

However, companies should have reported 17%, according to the analysis.

In fact, insurers have cheated policyholders by an average of $ 125 per car, Yahoo !, reports citing advocacy groups.

The lack of reimbursements led California Insurance Commissioner Ricardo Lara to express his frustration recently.

“On behalf of consumers, I have run out of patience,” Lara said in a statement.

“These insurance companies have 30 days to tell us once and for all how they are going to fare before we take any further action.”

The companies warned in the release were Mercury Insurance Co., Allstate Northbrook Indemnity Co. and CSAA Insurance Exchange.

These insurers cover 20% of California drivers.

According to the statement, Lara’s actions have now resulted in “$ 2.4 billion in driver premium relief.”

As people stayed at home to stop the spread of the coronavirus, fewer accidents occurred, which pushed insurance companies’ profits up.

Besides California, other states have taken additional steps.

For example, class actions have been filed in Nevada and Illinois.

While some have automatically reimbursed policyholders, many have not returned money or even reduced rates unless contacted.

So, you may have some cash waiting for you. To find out, you’ll want to call your insurer and ask them.

Additional refunds could depend on what happens with the lawsuits.

The Sun has contacted Mercury Insurance Co., Allstate Northbrook Indemnity Co. and CSAA Insurance Exchange for comment.

We recently explained four bill providers that might overcharge you, including auto lenders.

Personal finance guru Suze Orman explains why this is the best time to sell your car.

Plus, we explain five ways to improve your credit score.

Panic shoppers refuel their cars at gas stations as fuel shortage crisis worsens

We pay for your stories!

Do you have a story for the US Sun team?


Source link

Leave A Reply

Your email address will not be published.