The California Insurance Commissioner has ordered insurance companies to refund money to the drivers they insure. Reporter Joshua King says the refunds are because people have cut down drastically on the numbers of miles they drive, which means fewer accidents and insurance claims…
Last week, the California Insurance Commissioner ordered insurance companies to return premium to consumers and businesses paid for at least the months of March and April, including the month of May if “stay at home” restrictions continue. The refunds would affect six different insurance lines: private passenger automobile, commercial automobile, workers’ compensation, commercial multi-peril, commercial liability, medical malpractice, and any other insurance line where the risk of loss has fallen substantially as a result of the COVID-19 pandemic.
Charles Bell, with Consumer Reports, says some drivers could get back as much as 15 percent of their premium per month.
“When you buy an auto insurance premium, you’re rated for the number of miles that you tell the auto insurance company you’ll be driving that year. And if you’re only driving one-sixth or one-fifth of the driving miles that you estimated, you could be due for a very substantial reduction.”
