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California says insurers owe drivers more pandemic refunds

Thanksgiving Travel
Posted at 2:33 PM, Mar 11, 2021
and last updated 2021-03-11 17:33:50-05

SACRAMENTO, Calif. (AP) — California's insurance regulator says auto insurers shortchanged motorists on refunds ordered last year as crashes dropped during the coronavirus pandemic.

Traffic plummeted after California imposed the nation’s first stay-home order a year ago to slow the spread of the coronavirus.

But insurers say dangerous driving trends have worsened even as miles driven declined. They returned about $1.75 billion to consumers, but California Insurance Commissioner Ricardo Lara said Thursday that’s not nearly enough given their lower costs.

They refunded about 9% of consumers’ insurance bills on average, but Lara said it should have been about 17%.