California orders “stimulus checks” for brand new auto insurance – are you entitled to a refund? … – The Solar

CALIFORNIA has directed auto insurers to issue larger refunds as their profits soar during the coronavirus pandemic.

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

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You may be able to get a refund by contacting your insurer

However, according to the analysis, the companies are said to have brought back 17%.

In fact, insurers have withdrawn an average of $ 125 per car from their policyholders, Yahoo! citing interest groups.

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

"On behalf of consumers, I have no patience," Lara said in a statement.

"These insurance companies have 30 days to tell us once and for all how they're going to fix it before we take any further action."

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

These insurers cover 20% of California drivers.

The Sun approached Mercury Insurance Co., Allstate Northbrook Indemnity Co., and CSAA Insurance Exchange for comments.

In response, Mercury said: "We have received the letter from Commissioner Lara, we are currently examining the request and will respond within the requested timeframe."

It added that it has issued more than $ 137 million in reimbursements to policyholders.

According to the statement, Lara's measures have now resulted in "premium relief of 2.4 billion US dollars for drivers".

As individuals stayed at home to stop the spread of the coronavirus, accidents decreased, which boosted insurance company profits.

Aside from California, other states have taken additional measures.

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

While some have automatically reimbursed policyholders, many have not returned any money or even lowered rates unless they have been contacted.

So it may be possible that some cash is waiting for you. To find out, you should call your insurer and ask.

Additional refunds might depend on what happens to the lawsuits.

We recently explained four billing providers who might overcharge you, including auto lenders.

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