HOUSTON– If you received a refund or a discount rate from your automobile insurance provider, you may wish to hold on to it. At least one company is making customers pay it back if they decide to leave for another insurer.
We informed you in April how a lot of insurance provider were refunding customers since streets were virtually empty in march and April. That meant fewer mishaps and claims and a windfall for the insurance companies.
“The company mentioned that they were going to provide it to me due to COVID-19 as a thank you to their customers and as a ‘We see you, we care about you,'” Lok informed consumer professional Amy Davis.
In July, Lok found a much better rate with a various insurer. When she called Geico to let them know she’s be changing when her present policy ended, a Geico agent informed her she needed to pay back the refund.
“I kept asking her, ‘Where did I sign a lawfully binding document stating that if I were to cancel my policy that I have to pay this refund?’ due to the fact that I was under the impression that it went to my previous policy, not my new policy,” Lok told Davis.
Davis made several calls and sent out e-mails to Geico the same the other day asking the very same. No one from the company replied.
When we asked the Texas Department of Insurance Coverage if Geico could require the money back, TDI representative Ben Gonzalez sent out an e-mail that checked out in part, “The Texas Insurance coverage Code provides TDI the authority to order refunds if an insurer has actually charged an individual vehicle rate that is excessive or unjustly inequitable. State law specifies an extreme rate as one that is ‘most likely to produce a long-term revenue that is unreasonably high in relation to the insurance coverage supplied.’ We’ll be evaluating claims data as it becomes available to make sure rates are not excessive.”
Gonzalez asked Lok to submit a problem with TDI so they can ensure Geico is handling the refund constant with the plan they submitted with the state.
If this takes place to you, file a problem with TDI so there will be a record of insurance companies that clawed back money after they saved millions with less claims during the coronavirus shutdown.Source: click2houston.com