Delaware Insurance Commissioner Karen Weldin Stewart announced today, March 11, that the Allstate Insurance Company will be providing refunds or credits totaling $428,355 to 2,445 policyholders who had not received discounts on their automobile insurance premiums to which they were lawfully entitled.
All of the affected policyholders had successfully completed Department of Insurance-certified defensive driving courses, according to a press release from the Insurance Commissioner's office.
Delaware law provides that drivers who complete a certified course shall receive a 10% discount off the Personal Injury Protection (“PIP”) and liability components of their automobile insurance premiums. Drivers who complete a refresher course within the statutory time frame receive a 15% discount off their premiums.
After receiving consumer complaints, Commissioner Stewart requested Allstate perform a comprehensive audit to determine which policyholders were due refunds or credits and the extent of the credits or refunds to which they were entitled.
The company completed the audit in late January and letters were sent to all of the affected policyholders informing them of the credit or refund they would be receiving.
Commissioner Stewart acknowledged the role of the Department’s staff in promptly investigating the issue.
“Our Consumer Services Division quickly and correctly realized that a small number of consumer complaints suggested a greater problem. Their swift response was integral in achieving this outcome," Stewart said.
Commissioner Stewart further stated that Allstate’s full cooperation in conducting the audit was greatly appreciated. “It gratifies me that Allstate quickly recognized a problem existed and took the appropriate steps to rectify the situation.”
“The defensive driving program is very important to me and to the Department,” said Commissioner Stewart. “Drivers completing a DOI-certified program come away with a heightened awareness of the rules of the road and the skills they learn help keep them, and all of us, safe. The premium discount is a strong incentive for drivers to take a course, particularly in these tough economic times, and it is my responsibility to ensure that they receive it.”
