Insurer fined by State of Missouri and ordered to pay refunds

Safe Auto will pay refunds and a fine of $80,000 for not discounting safe autos, says the Insurance Department

Insurance News

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By Michael P. Tremoglie
 
Safe Auto failed to provide a safe auto discount and will now pay the price. An anti-theft discount for qualified vehicles between 2008-2015 was not applied. So Missouri drivers insured by Safe Auto may receive a refund or credit and the company pays an $80,000 fine.

This is the result of a market conduct examination conducted by the Missouri Department of Insurance. The department contends that the auto insurer failed to provide anti-theft discounts on vehicles that qualified for the discount between 2008 and 2015.

“When Missourians purchase insurance coverage, insurers must honor the complete terms of the policies, including providing discounts as promised in the insurance policies,” said Department Director John M. Huff in a prepared statement. “Our market conduct team will continue to hold insurance companies responsible for keeping their business practices compliant with the terms of the insurance policies and Missouri law.”

The state said Safe Auto only provided discounts to policyholders who proactively indicated to the company that their vehicle contained anti-theft equipment. Policyholders whose vehicles contained such equipment but did not tell the company were not provided discounts.

The Missouri Insurance Department was asked by Insurance Business America how would Safe Auto know if there were anti-theft equipment unless the policyholder told them.

Chris Cline Missouri Insurance Department spokesperson said, “Insurance companies use VIN numbers in underwriting and in claims handling. The department alleged the company chose not to use this information to determine discounts.”
 
Safe Auto also allegedly failed to provide other discounts as well. These were for quotes were issued via the insurer's website concerning vehicles with airbags, anti-lock brakes, daytime running lights and passive restraints on certain vehicles.
 

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