COVID Car Insurance Rebates Are State Law Now, Also Some Business Insurance Refunds Due
Written by 991KBU on April 13, 2020
If you have paid car insurance … business insurance … or other type of insurance payments in the past few weeks … you may get a refund.
The state Insurance Commissioner this morning ordered insurance companies to refund car insurance premiums to consumers.
Also .. refund to businesses for workers’ compensation, commercial multi-peril, commercial liability, medical malpractice, and any other business insurance policies.
Insurance Commissioner Ricardo Lara says insurance companies have to refund payments where the risk of loss has fallen substantially as a result of the COVID-19 pandemic.
The Commissioner’s order covers premiums paid for the months of March and April — including the month of May if “shelter in place” restrictions continue —
Lara says that “With Californians driving fewer miles and many businesses closed due to the COVID-19 emergency, consumers need relief from premiums that no longer reflect their present-day risk of accident or loss.
“Today’s mandatory action will put money back in people’s pockets when they need it most.”
Commissioner Lara has already requested at least a 60-day grace period for policyholders to pay their premiums so that insurance policies are not cancelled for nonpayment of premium during this challenging time. Together, these two actions will give consumers and businesses substantial financial relief.
The Commissioner’s Bulletin requires insurance companies to provide a premium credit, reduction, return of premium, or other appropriate premium adjustment as soon as possible, and no later than August 2020.
