North Carolina Insurance Commissioner Wayne Goodwin today announced that 1,803 Allstate Insurance Company policy holders in North Carolina will receive refunds totaling $680,718.22 after a Department of Insurance complaint investigation revealed the company was overcharging some auto insurance premiums.
“Everyone makes mistakes, even insurance companies,” said Commissioner Goodwin. “That’s why the Department of Insurance is here — we work every day to find these kinds of mistakes, make sure companies fix them, and protect consumers across North Carolina from future errors.”
The Department’s investigation revealed that Allstate was inappropriately including the cost of the rental car policy holders needed to rent following an accident in the property damage claim totals. That led to higher damage costs, which in turn led to higher premiums for some of those drivers. Allstate’s miscalculations occurred in 1,803 policies from July 2005 to July 2008.
The Department of Insurance became aware of the overcharges when researching a routine consumer complaint to the agency’s Consumer Services Division. The complaint investigation led to a larger review of Allstate’s practices. As soon as Allstate became aware of the rating error, the company amended the situation and began processing premium credits and refunds.
Topics North Carolina
Was this article valuable?
Here are more articles you may enjoy.
AI Bubble Risks Worst S&P 500 Crash Since 2008, Strategist Says 
Viewpoint: The ‘Unbundled’ Insurer Emerges in Age of AI as Value Chain Fragments 
TSMC Mulls Multibillion-Dollar Texas Site for More AI Chips 
Eastern States’ Grocers Shut Online Systems After Cyberattack 
