Allstate to Refund Texas Homeowners $51.6 Million
On Monday Allstate Insurance agreed to refund $51.6 million to its Texas customers for overcharges in homeowners insurance, but the insurer will not have to return another $19.2 million in overcharges under a settlement with state regulators.
The agreement between the insurer and the Texas Department of Insurance – which resolves a long-standing legal dispute between the two sides – also calls on Allstate to reduce its current rates by 3 percent and to leave those premiums in effect for at least one year.
An Allstate policyholder who has been with the company since the end of 2004 would see an average refund of about $80, which will be mailed by Nov. 1. Customers no longer with the insurer but who had policies in 2005 and the first half of 2006 will get an average $50.
Nearly 700,000 current and former policyholders are affected by the agreement.
Published on May 13, 2008
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