People in one state are pushing for car insurance companies to pay out COVID money to customers after they saw major profits.
During the shut down in 2020, many people stayed home and didn’t drive will continuing to pay their car insurance bills.
The lowered amount of car accidents saved insurance companies a lot of money.
Some companies were nice enough to offer discounts and rebates from their massive profits, but many think it was not enough and a class action lawsuit has been filed.
California is sticking up for its residents and Insurance Commissioner Ricardo Lara has warned companies they can reimburse or go to court.
Lara gave them thirty days to answer.
Analysis done by the state showed insurers were given back 9% of their auto premiums, when they should have been given back 17% in a 7 month timeframe.
While the companies gave out a total of $14 billion on their own, California calls their earnings an unearned windfall.
Progressive saw an 82% increase in net income while Geico tripled their earnings.
Companies weren’t required to pay their customers anything, and some companies did not at all.
They aren’t legally forced to at this moment, but lawsuits could change that.
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