Inaccurate Driver Records Lead Auto Insurance Companies to Reimburse Overcharge
By: Mike Silverstone, Car Insurance Analyst
CheaperCarInsurance.com
No one likes to be overcharged for anything, do they? For hundreds of drivers in Massachusetts who were overcharged for their car insurance policies, they will be getting a reimbursement from the auto insurance companies that charged them more than they should have, thanks to the Massachusetts Attorney General.
Several auto insurance companies failed to get updated records on at-fault determinations from the Comprehensive Loss Underwriting Exchange, which is a private database of driving records the auto insurance companies use to properly determine auto insurance rates. When a driver is involved in an accident and found to be at fault, he has the option to appeal that decision with his state’s Board of Appeals. If approved, the Comprehensive Loss Underwriting Exchange will update the driver’s record to reflect that they were indeed not at fault in the accident.
It’s up to each auto insurance company to update their own records to reflect this appeal. If they do not update their records, they may be charging too much for car insurance for certain policyholders, and will be in violation of state laws.
Making Amends
In this case, five auto insurance companies were found guilty of not updating their drivers’ records and overcharging for car insurance rates. These include:
- Metropolitan Property & Casualty
- Liberty Mutual Insurance Co
- Peerless Insurance Co.
- Plymouth Rock Assurance Corp.
- Pilgrim Insurance Co.
These five companies were found to have overcharged $100,000 or more to many policyholders. Because they didn’t update their records with the Comprehensive Loss Underwriting Exchange, policyholders were charged more than their premiums were worth for several months.
According to Martha Coakley, Attorney General for Massachusetts, the five companies are complying with the state’s request to fix the problem and reimburse policyholders what they are owed. This is good news for policyholders, who, if the problem had not been addressed, might have continued to see increasing car insurance rates over the years as a result of this oversight.
The auto insurance companies have agreed to pay more than $100,000 to Massachusetts within 10 days, and they will have 120 days to identify the policyholders who may have been unfairly overcharged. They will recalculate their rates for the future and get the drivers back to their pre-accident policy rates.
Are You Being Unfairly Charged for Car Insurance?
If you were involved in a car accident and were considered at fault, but you appealed the decision, make sure you are not paying higher rates with your auto insurance company. They may only update their records every few months, so if they have not updated your driving record since your appeal was approved, you may be paying the rate of someone who was at fault in an accident.
Check back to see how long you have been paying more than you should have. Gather your paperwork and contact your car insurance company:
- 1. Tell them the date of your accident
- 2. Find the date your car insurance rates were raised as a result
- 3. Discuss the appeal you filed, including the date you filed it and the date it was approved
- 4. Ask for reimbursement of the difference between the higher rate you were charged and what you should have paid, since you were found not at fault for the accident.
It is your legal right to pay the correct amount for your car insurance. Not taking care of this matter now could result in you continuing to have increased rates for the foreseeable future. Getting the accident responsibility removed from your driving and insurance record can save you money and headache down the line, so take a few minutes to take care of this situation now.
Posted: February 23, 2010
