Investigation Revealed that Insurers Overcharged Calif. Drivers $5.5B in 2020
Consumer Watchdog found that California auto insurers inadequately reduced rates accordingly with decreased claims amidst COVID-19.
Despite a dramatic driving slump and insurance premiums refunds issued during the early months of the COVID-19 pandemic in 2020, California auto insurance companies continued to charge pre-pandemic rates to the state’s drivers, a Consumer Watchdog analysis found.
The analysis concluded that insurers inadequately reduced rates accordingly with decreased accident claims, resulting in carriers overcharging California motorists by about $5.5 billion last year.
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