Insurance Companies to Refund Premiums to Drivers and Businesses
California orders insurance companies to refund your premiums due to COVID-19.
The California Department of Insurance has announced that it is ordering insurance companies to refund premiums for March and April 2020. The Department of Insurance’s Bulletin comes as a result of Californians driving fewer miles and the broad closure of businesses due to the pending COVID-19 pandemic.
According to Insurance Commissioner Lara, “[w]ith 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.”
What types of insurance coverage is included in the recent order?
The Department of Insurance’s order affects the following types of insurance coverage:
- Personal auto;
- Commercial auto;
- Workers’ compensation;
- Commercial liability;
- Medical malpractice; and
- Any other insurance line where the risk of loss has fallen substantially as a result of the pandemic.
Note that number 6 is a broad catch-all category, that likely encompasses any other types of insurance coverage you may carry.
Contact your insurance company to confirm the details of your premium refund.
We suggest you contact your insurance company to confirm if you need to take any additional steps, find out exactly how much your refund will be, and determine when you will be receiving it.
