Auto Insurer to Return Nearly $1 Million to New York Policyholders
After years of paying monthly auto insurance premiums, some lucky policyholders will get their favors returned by their auto insurer. According to recent reports from the New York State Insurance Department, Clarendon National Insurance Company has paid a fine of $360,000 for overcharging auto insurance policyholders and owes more in refunds.
Insurer Overcharged by 30 Percent
The New York State Insurance Department revealed that Clarendon National Insurance Company imposed a severe 30 percent hike in auto insurance rates in April 2006. This rate hike affected 1,227 insurance policyholders living in New York City and Long Island.
Policyholders to be Refunded Nearly $1 Million
As a result of overcharging the policyholders in 2006, the company now owes the specified policyholders a sum of $992,000. According to the department, the fine and refunds resulted from a review of Clarendon conducted after the company requested permission to withdraw from the private passenger automobile insurance market in New York State.
Further details regarding the refund have not been made available.
How to Catch a Break if You Dont Get a Refund
If youre not lucky enough to get a refund because youre not insured by the company or werent affected by the rate hike, this doesnt mean that you cant catch a break on auto insurance rates. There are tons of discounts you could take advantage of.
Also, if you shop around for a new auto insurance quote, you could find lower rates. What are you waiting for?