Auto Insurance Companies Breaking the Law

In California, Proposition 103 was recently passed, which made many car insurance holders very happy. The deal was that the auto insurance companies would have to start refunding monies that were overcharged, change the premiums that they are currently charging, and it called for “rate regulation” within the car insurance industry. It also changed how they evaluated their applications because they are no longer allowed to consider whether or not a person has had auto insurance before when deciding the premium.

There are several car insurance companies that are now under fire for continuing those practices however, and for breaking the law. Companies such as Safeco, Mercury, and State Farm, are still being accused of overcharging those that are applying for car insurance. The Foundation for Taxpayer and Consumer Rights, however, is going after those groups to get consumers’ money back.

The auto insurance companies had tried to defeat the proposition, but to no avail, and the worst part was most people didn’t even realize that the auto insurance companies were overcharging them. If there weren’t groups trying to help with keeping the auto insurance companies on track, many more would be getting overcharged as well.

The problem was that Californians were paying incredibly high auto insurance rates, so high that many were forced to drive without car insurance because they could not afford it. Even armed services personnel were at a loss to get auto insurance, because the companies were saying that since they were overseas there was a lapse in coverage and therefore they didn’t have to give them car insurance.

However, if those that think they may have been overcharged contact the above group, they will evaluate your claim to see if you have indeed, paid too much for your car insurance. If you have, they will help you get your refund.

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