CSAA faces lawsuit over claims it overcharged auto insurance policyholders $150 million

According to the lawsuit, the number of miles driven by motorists sharply dropped during the onset of the pandemic in March 2020. In the same year, CSAA only paid about 48.2 cents in claims for every dollar in premiums it collected from its auto policyholders. The complaint claims that the insurer excessively charged customers by at least $250 million between March 2020 and June 2021, and that CSAA repaid only about $96 million of that total.

Because of the overcharging, CSAA’s profits on its auto insurance business jumped 665% in 2020, the complaint said.

Consumer Watchdog gathered statements from legal

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