Maryland Auto Insurance Carriers Pay Restitution
More than half of Maryland's auto insurance companies have had to pay hundreds of thousands in administrative penalties and restitution to their policyholders after mishandling claims when vehicles are declared a total loss, according to the Maryland Insurance Administration.
According to the Baltimore Sun, a year-long review has revealed that 67 companies were undercompensating drivers by not correctly calculating the value of these vehicles, given the increase in Maryland's sales tax as well as increasing Motor Vehicle Administration fees, such as the title fee.
"To date, the MIA has fined the offending companies $235,000.00 and has instructed them to pay a total of $442,590.38 in restitution to 4,120 Maryland citizens,” said Ralph S. Tyler, the state insurance commissioner in a statement. “We are still in the process of examining seven companies, but we are committed to getting vehicle owners what they are guaranteed under the law."
