Allstate issues refunds after overcharging for auto insurance
By: News 14 Carolina Web Staff
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NORTH CAROLINA -- More than 1,800 Allstate Insurance policy holders in North Carolina will receive refunds totaling more than $680,000 after an investigation found the company was overcharging some auto insurance premiums.
The Department of Insurance investigated the error after a consumer complaint. It found that Allstate was inappropriately including rental car costs when calculating property damage claim totals. Allstate's miscalculations occurred in 1,800 policies from July 2005 to July 2008.
The investigation led to a larger review of Allstate's practices and Allstate then amended the situation and began processing premium credits and refunds.