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Pandemic Auto Insurance Refunds Too Low?

Three of the largest auto insurance companies in California have been ordered to close the gap on refunds owed to motorists impacted by the pandemic. State Insurance Commissioner Ricardo Lara says the underpayment is greatest with Allstate, Mercury, and CSAA. He’s threatening legal action if reimbursements don’t hit more appropriate amounts. Lara says these companies are the worst offenders and cover about 20-percent of drivers. Deputy Commissioner of Communications, Michael Soller, says excess premiums were charged, even though many people were driving less, especially during last year’s Stay At Home Order, when there were many residents working from home…

click to listen to Michael Soller

Soller says an Insurance Department analysis found that from March to September of 2020, companies returned, on average, nine-percent of premiums. But it should have been closer to 17-percent. He also points out that it’s not just those driving less who have been impacted, but refunds should also reflect the reduced traffic volume that occurred for a while…

click to listen to Michael Soller

Allstate, Mercury, and CSAA have 30 days to respond. And Soller says other companies are also being looked at.

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