Residents v Grange Mutual Casualty Group, Trustgard Insurance Co.
Grange Mutual Settles Auto Insurance Class Action Suit in Ohio
About 7,000 Ohio residents who were customers of Grange Mutual Casualty Group and a related company will get a partial refund of past car-insurance premiums as part of a settlement of a class-action lawsuit.
Some drivers who insured their vehicles with Grange Mutual Casualty Group from November 2000 to June 2001 will receive a refund of as much as $60 next year.
The class-action lawsuit was filed against Grange and a subsidiary, Trustgard Insurance Co., alleging that Grange raised car insurance rates by 3.46 percent without filing for a rate increase with the Ohio Department of Insurance.
Trustgard writes car-insurance policies for high-risk drivers, who might otherwise have problems getting insurance.
The settlement is expected to cost Grange $407,226, plus $500,000 to cover plaintiffs' legal fees.
In Ohio, insurers are required to file an application when they change their rates. The rates must then be approved by the insurance department.
High-risk car-insurance policies that went into effect between November 2000 and May 2001 and policies that were renewed between December 2000 and June 2001 were allegedly charged the higher, unauthorized rates, according to court documents.
The average overcharge was $18 per policy.
Customers who paid the higher, unapproved rates are eligible for a refund as part of the court settlement, said an attorney for the policyholders.
About 37,000 Ohioans were eligible; 7,163 people took the necessary steps to claim money before the deadline.
People who are still insured by Grange, or who agree to return to the company, will receive a $60 credit toward their premium. Those who aren't eligible for Grange insurance, either because they moved to a state where the company doesn't do business or they no longer have a car or license, also will receive $60. Former policyholders who refuse to return to the company will receive a one-time cash payment of $18.
