Sept. 9, 2021— Insurers selling personal auto insurance reaped windfall profits of at least $29 billion in 2020 as miles driven, vehicle crashes and auto insurance claims dropped.
According to a press release from the Consumer Federation of America, data shows that insurers collected $42 billion in excess premiums while providing only $13 billion in “premium relief.” Instead of returning the COVID windfall to consumers, insurers increased payouts to senior management and stockholders, the release said.
“In virtually every state, auto insurance premiums – by law – cannot be excessive. The inability or unwillingness of almost all state insurance regulators to enforce the law and protect consumers raises serious questions,” J. Robert Hunter, CFA’s director of insurance, said in a statement. “As we pointed out in letter after letter to insurance regulators throughout 2020, it was crystal clear that insurers’ premium relief was woefully inadequate."
