Auto insurers accused of failing to reply adequately and profiting throughout pandemic
Despite these massive savings on insurance claims, most insurers have not been able to translate this into savings for their customers, noted Van Cleef. According to CW, the majority of insurers did not return customers more than half of the monthly premium. Of the largest personal vehicle insurers in each state, only 18 out of 71 companies returned at least 50% of monthly premium to customers – either in the form of a refund, discount, credit, or price change. And of these, only 8% actually returned at least a monthly premium.
The response of auto insurers to the pandemic is mixed, said van Cleef. While some insurers gave their customers credit on their bills, others made long-term rate cuts, while others even offered two-month discounts. However, there have been some instances where customers could not get a refund if they did not call their insurers.
Some customers who claim they didn’t get adequate relief – or nothing – have sued their insurers, the CW rep said. Insurance companies that have faced such litigation this year include Allstate, American Family Insurance, Progressive, GEICO, Erie, Travelers, and more.
It wasn’t enough just to give something back to auto insurance customers, said Van Cleef; The most customer-friendly insurers were the ones who offered immediate relief, he suggested.
“A good answer should be given in good time. The relief should not only help customers in the future, but also at the start of the pandemic, ”said van Cleef. “There was economic trouble in the spring when the decline in driving behavior occurred, so any economic respite at that time would have been most beneficial.”
Continue reading: Consumer Federation of America is considering measures to facilitate auto insurance $ 6.5 billion
In April last year, the CFA reviewed the premium relief efforts of car insurers. This initial review found that many insurers were helping their customers during such a difficult time, but others were slow to respond to demands for lower premiums.