Regulators Recover Millions for Car Insurance Consumers

Dollar bill peaking out of purseThe Colorado Division of Insurance (DOI) recently released its annual Complaints Against Insurers report, announcing that it assisted in recovering more than $12 million for the state’s insurance policyholders during the past fiscal year.

According to the DOI release, Coloradans made more than 26,000 insurance inquiries and filed almost 5,000 formal complaints against coverage providers in 2009-2010. As has been the case since 2005, the majority of the complaints and protests this year — 55 percent — were auto-related.

Reasons for grievances filed against car insurers included disputes regarding coverage and protests over surcharges, policy cancelations and coverage reductions.

Nearly 80 percent of the complaints formally filed against auto-coverage providers had to do with claims handling.

Although the largest proportion of complaints and protests filed were against Colorado car insurance companies, this type of complaint has historically had the lowest confirmation rate, and the same is true this year.

For the 2009-2010 fiscal year, 54 percent of the nearly 5,000 complaints and protests were auto-related, yet the DOI determined in only 40 percent of those cases that the insurer had acted wrongly.

Out of those upheld complaints, wronged auto policyholders were returned $2.76 million.

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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