Due to the Golden State’s Covid-19 stay-at-home order last year, California traffic accidents dropped by half according to the Road Ecology Center at the University of California-Davis. While many people suffered economically during the pandemic, it seems that insurers saw record breaking profits in 2020!
As a result, California’s insurance commissioner ordered auto insurers to report by April 30 on how they will repay drivers for overcharged premiums during the pandemic. The insurance commissioner says that car insurers overcharged by 8% from March through September of 2020.
A proposed class of California insurance policyholders has now filed a federal lawsuit against Geico, claiming the auto insurer has wrongly refused to pay back these overcharged premiums even though fewer people are driving on the roads during the pandemic. The lead plaintiff wants to bring the proposed class action to end Geico’s practice of unfairly profiting during the Covid-19 pandemic.