CRANSTON, R.I. (WPRI) – Hundreds of Rhode Islanders are set to receive refunds on their car insurance.
According to a document obtained by Call 12 for Action, the Esurance Property and Casualty Insurance Company owes $223,963.40 to Rhode Island policy holders who were improperly charged for their car insurance policies.
State law only allows insurance companies to issue a surcharge on a consumer’s auto insurance policy once a year if the driver is in an accident or receives a moving violation.
The R.I. Department of Business Regulation (DBR) says Esurance added those surcharges onto six -month policies.
According to a consent agreement between DBR and Esurance, the company reviewed five years of policy files and determined 279 policies were surcharged in error.
Esurance agreed to issue refunds plus interest.
The company did not respond to Call 12 for Action’s repeated requests for comment this week, but according to the consent agreement, Esurance is manually tracking policies to prevent similar errors.
Esurance also said it will make programming changes later this year to permanently fix the issue.