Finding a good car insurance policy from a reputable company is paramount. In fact, this is one of the most significant aspects of owning a car, as it helps protect your investment. However, there are times when car insurance companies either aren’t upfront or mishandle paperwork. Any mistake made by insurance agents can cost customers. This is why Liberty Mutual and six other car insurance companies must pay back Florida customers. 

Here’s a look into what happened.

Liberty Mutual is in the hot seat over car insurance polices

Among the six car insurance companies forced to pay back Florida customers is Liberty Mutual. In fact, it has to make the largest payout to customers as the company owes a combined $4.7 million in refunds. According to Fox29 WXLX, the company overcharged 46,053 customers for car insurance policies. 

Liberty Mutual issued the following statement regarding overcharging on car insurance policies. 

“We applied a new rate program in Florida and filed it with the Office of Insurance Regulation (“FLOIR”). Under state regulations, carriers can immediately implement their actuarially indicated rates and make adjustments after FLOIR review. Our rates were subsequently confirmed with some modifications and FLOR requested the refund of some premiums to impacted customers, which we are in the process of completing.”

Another insurance company, Peerless Indemnity, has to issue refunds to customers. In total, the company has to pay $76,000. 

5 smaller companies failed to file paperwork

Overcharging for car insurance policies isn’t the only issue. Five other insurance companies have to pay back customers for failing to file paperwork on time. First, an insurance company called Gateway has to pay a total of $3,000. Another company called Pie Causality owes customers a total of $6,250. 

Pie Insurance has to pay back $3,000, and another company with the same name owes a whopping $12,500 for failure to file paperwork on time. 

Of course, Florida regulators also require the companies to pay fines. This is a part of Florida’s Office of Insurance Regulation attempt at stabilizing the market for customers. These changes should inspire confidence for people seeking vehicle coverage. Florida car insurance is notoriously expensive.