Over $1 Million Recovered for Colo. Auto Insurance Policyholders

Colorado regulators announced on Wednesday that they returned more than $11.7 million to the state’s policyholders between June 2010 and July 2011. The funds were returned to policyholders because of wrongdoings on the part of their insurers.

Colorado auto insurance complaintsOverall recoveries were down 3 percent from the year before.

Regulators reclaimed the sums for consumers in the form of additional claims payments, overturned denials of benefits and reinstatments of coverage, among other things.

“Assisting consumers and helping to resolve issues they have with their insurance company are some of our most important responsibilities,” Commissioner Jim Riesberg said in a news release.

According to the Colorado Division of Insurance, just over half of the complaints filed with regulators were against car insurance companies, even though the accounted for only about 10 percent of the total dollar amount returned to consumers.

The most complaints filed by Colorado auto insurance policyholders most commonly were regarding rates and claims handling.

It took an average of 40 days to close a car coverage complaint, according to the report from regulators, and the average recovery size for those complaints was about $2,200.

The consumer affairs team fielded a total of more than 22,500 consumer contacts during the 12-month period.

Only about 46 percent of the car insurance complaints and inquiries submitted to the Division checked out as cases in which the insurer actually committed some sort of wrongdoing.

Colorado has a unique complaint system for auto policyholders because it allows them to protest things like surcharges and non-renewals of coverage. Those protests led to about $50,000 being returned to policyholders.

About Matthew Morisset
Matthew Morisset is a proud alumnus of the University of Redlands, where he obtained a degree in English Literature. Utilizing his passion for analysis and writing, Matthew looks for important trends in the auto insurance industry and their implications for consumers and the market as a whole.

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