Call Kurtis

Call Kurtis: No Refunds Issued

SACRAMENTO (CBS13) ― The Insurance Commissioner has ordered several rate cuts, but what happens to people who just paid their premiums?

Some of these cuts are dramatic, saving people hundreds of dollars each year, but if you just paid your annual premium, you may have to wait until next year to get the lower rate.

"I have four cars insured by Allstate, including my 1969 VW van," said Silvia Felix.

Silvia pays $1,800 every six months to insure those cars, and another $1,000 a year to insure her home. She was exited to learn the State Insurance Commissioner ordered several major cuts in auto and home insurance rates.

She called her Allstate agent, thinking she'd get a refund for being overcharged.

"They said sorry, there is no check in the mail," she said.

Her agent was right: If you've already paid your premium, you won't get a refund.

"This is just for new business or new renewals moving forward into the future," said Insurance Commissioner Steve Poizner.

Silvia just got the six month renewal for her auto insurance and it's almost $400 less, but she won't see a reduction in her homeowner's insurance until she renews next year. According to the Department of Insurance, Allstate policy holders will save a whopping $255 million.

Mercury's rates were cut by $61 million, Geico's by nearly $68 million, and AAA by $100 million.

Since 2007, Californians have saved $1.7 billion on their premiums.

"This really oculdn't happen at a better time," Poizner said. "Consumers are struggling now, gasoline prices are through the roof, the economy is sputtering, families are struggling to make ends meet."

Silvia is happy she'll be saving money, but she wishes she'd gotten a refund for years of higher premiums.

"What they are doing isn't fair, but insurance companies aren't in business to be fair," she said.

The Allstate rate cut is expected to go into effect within the next couple weeks. Refunds for customers aren't out of the question entirely; the state has a separate case with Allstate on the matter.

In the meantime, if you have a renewal coming up, call Allstate and make sure you're getting the lower rate. If they say no, the Insurance Commissioner wants to hear from you.

The phone number is 1-800-927-HELP

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