Motorists to Receive Refunds for High Premiums

05/04/2010

North Carolina motorists who paid too much for their auto insurance in 2009 may soon receive relief, according to a recent report by the Insurance Journal.

More than $50 million in refund checks will be mailed to policyholders who endured premium increases implemented in 2008. This is the first wave of such refunds, which are the result of a 2009 auto rate settlement between the North Carolina Rate Bureau and the Department of Insurance.

"These refund checks represent instances where North Carolina drivers were paying too much for their auto insurance," Insurance Commissioner Wayne Goodwin said, "and I'm glad that these extra premium dollars plus interest will go back into their wallets."

Companies that issue 6-month and 12-month policies will mail refunds between May 1 and July 31. All others will participate in a second wave of checks, slated to start November 1. These refunds will make up for the difference in rates agreed on through the settlement and those actually charged by insurers.

Before the rate increases, North Carolina's auto insurance premiums were among the 10 cheapest in the country, according to the Insurance Information Institute.

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