A lot of people in the United States are keen to know whether another stimulus check is coming their way. Some of the states are providing relief on their own to their residents. Some drivers are also getting money as relief in the mail. Car insurers are the ones who are forced to pay. The governor of Michigan said the insurance companies in the state are hoarding billions in extra cash. Now the insurers there have to provide refunds. Gov. Gretchen Whitmer of Michigan urged for refunds of up to $675 per vehicle to be “promptly returned” to policyholders in her state. “Billions in surplus funds should not be held by insurers to invest for their own profit or be conditioned on renewal of a policy,” Whitmer wrote in a letter. The Michigan Catastrophic Claims Association is accused of holding $5 billion more than necessary in a fund. The fund is set up to reimburse insurers for expensive medical claims. The insurance companies have readily agreed to offer a refund.
Meanwhile, other states have received complaints of overcharging during the pandemic. The financial results of the companies are impressive as well. Progressive posted an 82 per cent increase in net income while Geico’s pretax earnings tripled during the second and third quarters of 2020. More than $14 billion in refunds have been voluntarily provided by the insurance providers last year, according to the American Property Casualty Insurance Association. Washington and New Mexico are also reviewing whether the drivers received enough money back. Massachusetts Attorney General Maura Healey has already sent letters to the state’s insurance regulator in this regard. Besides, class-action lawsuits have been filed in Nevada and Illinois this year.