Allstate Insurance is refunding $680,718 to more than 1,800 of its automobile policy holders in North Carolina, the state Insurance Department said today.
The refunds -- which average $378 per policy -- are the result of an Insurance Department investigation that found that the insurer was overcharging some customers.
The investigation found Allstate was erroneously including the cost of a car rental triggered by an accident -- while a vehicle was being repaired -- when calculating total property damage claims, which isn't permitted. The miscalculation resulted in higher premiums for 1,803 policies from July 2005 to July 2008.
"Everyone makes mistakes, even insurance companies," Insurance Commissioner Wayne Goodwin said in a prepared statement. The department's investigation was triggered by a consumer complaint.
Allstate already has begun sending out refunds, said department spokeswoman Kristin Milam.
Consumers with questions about the refunds can call the department's consumer helpline, 1-800-546-5664.
David Ranii has been a business reporter at The News & Observer since 1993. Over the years he has covered information technology, banking, insurance, the pharmaceutical and biotechnology industries, media businesses and real estate. Contact him at 919-829-4877 or 
Comments
Hmmm....
Wed, 09/15/2010 - 21:37 — TheLibertineIt makes you wonder what else those "good hands" have been up to?
I am all in with allstate
Wed, 09/15/2010 - 20:05 — BigMonsterI hope I get a refund. I have auto, house, & umbrella coverage from allstate.
If you have more than $500k in assets, you need umbrella coverage.
Look it up...
Allstate Insurance Co. deceptive trade practice
Wed, 09/15/2010 - 15:35 — sportflierOh - I wonder what other "mistakes" would turn up with a full scale investigation on this company? Where is the Insurance Commission and oversight of these deceptive trade practices? Should not the CEO be charged with criminal intent? Just because they refund the money does not make it less of a crime to steal. I'm glad I do not use Allstate, but then again my insurance company may be doing the same thing. Apparently, there is no oversight to stop them.
I work for another large
Fri, 09/17/2010 - 10:45 — lisahenryI work for another large insurance company, and in Allstates defense, the last time I looked up mistake in the dictionary it did not have a definition of deceptive trade practices. Computers have glitches all the time, no matter what kind of company it is. I'm so tired of insurance companies being portrayed as evil in the media and everywhere else. People hate them until they total their car $28000 dollars worth or whatever, then they are thankful for them. Or when there house burns down or destroyed by a hurricane, or their loved one passes and they are handed a $100,000 check. Insurance companies have a lot of money, but mainly for reserve in the case of a major catastophe so they won't go bankrupt when having to pay out 10 billion in a situation like Katrina. The insurance company is not "out to get you"! Would you like the police to arrest your gradma for jaywalking when she had no idea she was doing anything wrong? CEO's charged with criminal intent? Give me a break!
Allstate
Wed, 09/15/2010 - 13:29 — sadmaawkIf I lived in N.C. I'd be looking for a new insurance commissioner, as well as a new head of S.B.I. You folks seem to have more problems with your "public servants" than Florida. (And that's a bunch.) Mr. Goodwin sounds like he is just an apologist for an insurance company that got caught. (and NOT by the due diligence of his agency.)