Be prepared for a stimulation check from an unexpected source |

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Stimulus control, or its equivalent, could hit your banks from unexpected sources. And they’re not just federal or state governments. Auto insurance is one of the largest segments of insurance to cover the risk of financial liability or loss of a car or other motor vehicles, in the event of an accident.

But auto insurance companies realized it was unfair to charge customers the same amount of premium during pandemic years. the change in work schedule has caused more people to work from home and travel much less. People don’t travel as much as they did during the pre-pandemic days.

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Insurance companies have realized that people don’t need to pay that much because 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 of a boon to them as a stimulus check given by federal and state authorities.

Insurance refunds are as valuable as government stimulus checks

The total amount is $ 600 million in premium refunds paid to customers for their monthly premium, just for the months of April and May 2020. More are expected to come from insurance companies.

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California insurance commissioner Ricardo Lara had previously persuaded auto insurers to seek larger reimbursements given the evolving situation. Lara’s office found that the amount refunded did not live up to expectations.

The commissioner this month ordered 3 of the auto insurers to reimburse car owners a higher percentage of premiums. The ordinance targeted three of the companies that cover 20% of all insured vehicles in the state. CSAA, Mercury and Allstate Northbrook were asked to pay immediately.

Commissioner Lara harshly criticized the companies and ordered them to spit more within 30 days or face prosecution. Lara said insurance companies collectively should have reimbursed drivers over $ 2.4 billion. While the pandemic still rages in the United States, Lara has extended the repayment order beyond that date depending on the situation.

Drivers can look forward to a generous stimulus check from the auto insurance company, and that could be substantial if other states step in.

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