CA commissioner orders insurers to issue refunds to drivers amid coronavirus pandemic

[laylalex 7,300]

California Insurance Commissioner Ricardo Lara is ordering all insurance companies, effective Monday to "provide a premium credit, reduction, return of premium, or other appropriate premium adjustment as soon as possible, and no later than August 2020."

The order covers premiums paid for at least March and April. It will extend through May if shelter-in-place restrictions continue.

https://abc7news.com/california-auto-insurance-return-premiums-commissioner-company-coronavirus/6100040/

[Cyberfx1024 7,980]

3 hours ago, laylalex said:

 

 

https://abc7news.com/california-auto-insurance-return-premiums-commissioner-company-coronavirus/6100040/

USAA has already started doing this about a week ago which is awesome. 

[Dashinka 24,798]

Don’t you have to own a car first?

[yuna628 9,713]

Most insurance companies across the US are doing this. It's only a small credit of about 15%.

[TBoneTX 46,125]

1 hour ago, yuna628 said:

It's only a small credit

True, but pennies add up.

[Steeleballz 7,550]

2 hours ago, yuna628 said:

Most insurance companies across the US are doing this. It's only a small credit of about 15%.

 

   They say claims are down significantly more than that 15%, but getting money back from insurance is like getting blood from a stone. I appreciate the 15%, but I also suspect it was more of a preemptive gesture, hoping to prevent regulatory agencies from ordering larger reimbursements.

 

   

[Boiler 46,116]

6 minutes ago, Steeleballz said:

 

   They say claims are down significantly more than that 15%, but getting money back from insurance is like getting blood from a stone. I appreciate the 15%, but I also suspect it was more of a preemptive gesture, hoping to prevent regulatory agencies from ordering larger reimbursements.

 

   

It does set an interesting precedent, wonder if they have thought this through.

[Steeleballz 7,550]

2 minutes ago, Boiler said:

It does set an interesting precedent, wonder if they have thought this through.

 

   I'm sure they have. Risk/benefit calculations are their area of expertise. I think that's how they arrived at 15%.

[Cyberfx1024 7,980]

56 minutes ago, Steeleballz said:

 

   They say claims are down significantly more than that 15%, but getting money back from insurance is like getting blood from a stone. I appreciate the 15%, but I also suspect it was more of a preemptive gesture, hoping to prevent regulatory agencies from ordering larger reimbursements.

 

   

I have heard this as well. I am in a love hate relationship with USAA and unlikely to move from them anytime soon. But this is what they put out on their website this week concerning this: 

USAA, the country’s fifth largest property-casualty insurer, will be returning $520 million to its members. This payment is a result of data showing members are driving less due to stay-at-home and shelter-in-place guidance across the country. Every member with an auto insurance policy in effect as of March 31, 2020, will receive a 20% credit on two months of premiums in the coming weeks.

[Boiler 46,116]

45 minutes ago, Steeleballz said:

 

   I'm sure they have. Risk/benefit calculations are their area of expertise. I think that's how they arrived at 15%.

We will put that to one side for a moment...

 

Anyway so you may be aware there has been discussions about Business Interruption covers applying in these circumstances, so lets say it was decided that they should, well obviously their risk calculations could not have reasonably be seen to take this into account so a premium surcharge would be in order.

[laylalex 7,300]

6 hours ago, Dashinka said:

Don’t you have to own a car first?

I suppose it's the primary policyholder who gets the refund. 

[Ban Hammer 13,551]

i wonder if this will also be used to deny claims - like auto wrecks during quarantine.

[TBoneTX 46,125]

They'll quarantine the repair check.

[Nature Boy 2.0 8,382]

10 hours ago, Cyberfx1024 said:

USAA has already started doing this about a week ago which is awesome. 

Did you get refund or price adjustment.  I have not checked yet

[TBoneTX 46,125]

2 minutes ago, Nature Boy 2.0 said:

Did you get refund or price adjustment.  I have not checked yet

They're sending you a spell-check.