The state of California is demanding that car insurance companies answer to how they will correct taking advantage of consumers during the pandemic.
A statement warned companies that they have thirty days to respond.
Companies mentioned in the statement included Mercury Insurance Co., Allstate Northbrook Indemnity Co., and CSAA Insurance Exchange.
20% of California car owners are insured by those companies.
Mercury insurance told The Sun, “We are in receipt of Commissioner Lara’s letter, are currently reviewing the request, and will respond within the time frame requested.”
The company stated that they have issued $137 million dollars to their customers already.
California insurance commissioner Ricardo Lara said his efforts have already helped provide $2.4 billion dollars to customers.
An analysis showed that car insurance companies returned 9% of premiums to customers on average, but the number should be 17%.
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