As a result, motorists in Arizona are now seeing increases after getting a break during the height of the pandemic.
COVID-19 breaks debated
Although Arizona does not have the authority to pre-approve auto insurance rates, the state Department of Insurance reviews rate filings to ensure they are not unfairly discriminatory and meet other legal requirements, said Erin Klug, deputy director of the Product Filings and Compliance Division at the Arizona Department of Insurance. and financial institutions.
“The department cannot find an excessive rate as long as there is abundant competition,” Klug said. “The department reviews each rate filing it receives to ensure it is justified and meets the requirements of the law.”
While California was the only state to require insurers to give auto policyholders a break on their premiums as claims plummeted amid COVID-19 shutdowns, Arizona was among many states encouraging insurers to offer premium relief, Klug said.
Some were offering temporary premium discounts or credits, while others were changing their base rates, and most were implementing special programs to delay policy cancellations for nonpayment for customers hit hard by COVID-19. 19, she noted.
Across the industry, insurers have refunded or reduced about $14 billion in response to lower claims, according to the insurance association.