One year ago, the COVID-19 pandemic compelled state and local governments to urge their communities to stay home. For months, people remained at home and stopped commuting and traveling for the most part. As a result, fewer drivers and cars on the road meant fewer auto accidents, prompting calls to auto insurance companies to cut their rates and offer refunds to customers. Recently, California has taken increased measures to force auto insurance companies to provide these refunds—especially as many of these companies overcharged policyholders during the pandemic. Let’s take a look at what this could mean for policyholders in the Temecula and Murrieta areas.
Accusations of Auto Insurers Overcharging California Customers
According to California Insurance Commissioner Ricardo Lara, many auto insurance companies overcharged policyholders during the pandemic or otherwise failed to provide sufficient refunds. Lara’s office found that the top ten auto insurers returned an average of nine percent in premiums between March and September 2020, when they should have refunded as much as 17 percent during this same period. The top ten auto insurance companies collected approximately $220 million more in California premiums than they should have, spurring accusations of wrongdoing.
California Sets New Deadline For Auto Insurance Companies
California has identified April 30, 2021, as the deadline for auto insurance companies to report their plans for issuing refunds to policyholders they overcharged during the pandemic. Consumer watchdog agencies believe that insurers must refund the profits associated with reduced driving and accident payouts due to the pandemic. Each company needs to provide plans for issuing these refunds, including the method and amount of repayment. So far, State Farm is the first auto insurance company to announce its plan to return $400 million to approximately 3.5 million policyholders throughout California.
How a Temecula Auto Insurance Attorney Can Help
Whether you’ve suffered an auto accident injury in Riverside County and you need help collecting compensation, or you have other questions about an issue with your auto insurance company, enlisting the guidance of a trusted attorney can help you achieve your desired outcome. As California policyholders navigate the economic fallout of the pandemic, it can be helpful to discuss your questions and concerns with a knowledgeable auto accident lawyer. Reach out today to get started.
Call the dedicated auto accident attorneys at Hales & Associates, A Professional Law Corporation today at 1-888-931-WORK (9675) to get started with a knowledgeable Murrieta lawyer.