Some N.C. Auto Insurance Policyholders to Get Refunds

cars on roadAllstate Insurance will be refunding roughly $680,700 to North Carolina auto insurance policyholders after the state insurance department identified a rating error that resulted in the company’s overcharging of some 1,800 policies.

The state’s actions stemmed from a consumer complaint filed with the department. After an investigation, government officials found that Allstate was wrongfully factoring in rental car costs when assessing property damage claims.

Commissioner Wayne Goodwin stated he is pleased his team’s discovery will return money to those who were overcharged, but stopped short of accusing the insurer of having committed any wrongdoing in the case.

“Everyone makes mistakes, even insurance companies,” stated Goodwin in a press release. “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.”

Allstate’s miscalculations on the affected policies took place between July 2005 and July 2008. The auto insurance company began issuing refunds after learning of its error.

According to the North Carolina Department of Insurance, nearly 160 complaints were filed about the company’s practices last year; that’s nearly 8 percent of the total number of complaints filed in 2009. Allstate Insurance wrote about 3.4 percent of the total North Carolina auto insurance policies in place that year.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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