Amongst the COVID-19 pandemic, local traffic has decreased tremendously.

With people remaining home as much as they can do to California’s Shelter-in-place order an unprecedented event has occurred – a tremendous decrease of cars on the road.

Their cars provide very little importance in this pandemic and as a result are being driven less. 

In response, California Insurance Commissioner Ricardo Lara issued an order to the insurance companies to provide aid to the people.

“Commissioner Lara hereby orders insurers to make an initial premium refund for the months of March and April to all adversely impacted California policyholders in the following lines of insurance, as quickly as practicable, but in any event no later than 120 days after the date of this Bulletin. (April 13, 2020),” Lara’s office announced through a press bulletin. 

This order applies to all of the following: Private passenger automobile, commercial automobile, workers’ compensation, commercial multiple peril, commercial liability, medical malpractice insurance, and lines of coverage that overestimated levels of risk during this time. 

Allstate and State Farm have already offered return premiums, while others are hesitant to begin this process. 

“It’s clear that for the bulk of insurers, there’s room for improvement — even among those providing relief,” says Birny Birnbaum, executive director of the Center for Economic Justice. “There’s certainly room for those who haven’t taken action to provide relief.” 

The immediate halting of operations for “non-essential” businesses left millions of citizens out of a job and a steady income. 

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