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Wednesday, March 22, 2023

Be Ready For A Stimulus Check From An Unexpected Source

Stimulus check, or its equivalent, could be hitting your banks from unexpected sources. And they are not only from the federal or state governments. Car insurance is one of the biggest insurance segments to cover the risk of financial liability or loss of a car or other motor vehicles, in case of an accident.

But car insurance companies have realized that it is unfair to charge customers the same premium amount during the pandemic years. the change in work schedule has led to more people working out of homes and traveling a lot less. People do not travel as much as during the pre-pandemic days.

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The insurance companies have realized that people do not need to pay as much as they no longer fall under the pre-COVID risk profile. A temporary arrangement could be made to ease the burden of the already strained finances of a majority of Americans.

Insurance companies like Insurer Allstate have opted for a partial refund to customers that has been as much a boon for them as a stimulus check given by the federal and state authorities.

Insurance Refunds As Valuable As Stimulus Check From The Government

The total amount comes to a whopping $600M of premium refunds going out to customers for their monthly premium, just for the months of April and May 2020. More should be coming in from the insurance companies.

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the Insurance commissioner of California, Ricardo Lara had earlier persuaded auto insurers for bigger refunds given the changed situation. Lara’s office has noted that the amount refunded hasn’t been up to the expected mark.

The Commissioner this month ordered 3 of the auto insurers to refund car owners a greater percentage of the premiums. The order has targeted three of the companies that cover 20% of all vehicles insured in the state. CSAA, Mercury, and Allstate Northbrook have been asked to pay up immediately.

Commissioner Lara has come down hard on the companies and ordered them to cough up more within 30 days or face action. Lara has said that the insurance companies should have collectively refunded over $2.4B to drivers. With the pandemic still raging across the US, Lara has extended the refund order beyond that date according to the situation.

Drivers can hope for a generous stimulus check from the car insurance company and it could be substantial if other states get into the act.

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