Problem arise as auto insurers accused for failing to responded to the pandemic, insurers managed to turn a profit due to the resulting reduction in driving activity, as many did not get back enough to their customers in the form of refunds.
A revealed was made from the feature on the US Public Interest Research Group’s (US PIRG) website, Jacob Van Cleef, Consumer Watchdog (CW) associate shared the consumer advocate group’s findings on US auto insurers and how most treated treated their customers in the midst of a pandemic.
While explaining, he said not all companies have released financial statements, van Cleef cited data from the Consumer Federation of America (CFA), which suggests that insurance companies increased their profits by tens of billions of dollars due to the significant reduction in driving activity during the pandemic, and this led to less accidents and less auto damage claims.
Van Cleef noted that, most insurers failed to translate that into savings for their customers, despite these massive savings in insurance claims.
Reports revealed that, Out of the largest insurers of personal vehicles in each state, only 18 out of 71 companies returned at least 50% of one month’s worth of premium to customers – either in the form of a refund, rebate, credit, or rate changes.
Van Cleef said, auto insurers response to the pandemic was mixed, while some insurers gave customers credits on their bills, others implemented long-term rate reductions, while others even issued two-month rebates.
While in some cases where customers could not get a refund unless they called their insurers.
Now, those customer who claim not to get adequate relief, or nothing at all have sued their insurers, the Watchdog associate said.
Those insurers company who faced such lawsuits this year include Allstate, American Family Insurers, Progressive, GEICO, Erie, Travelers and more like that.