Allstate to reimburse 1,803 customers for overcharging

Allstate Insurance is refunding $680,718 to more than 1,800 of its automobile policy holders in North Carolina, the state Insurance Department said today.

The refunds -- which average $378 per policy -- are the result of an Insurance Department investigation that found that the insurer was overcharging some customers.

The investigation found Allstate was erroneously including the cost of a car rental triggered by an accident -- while a vehicle was being repaired -- when calculating total property damage claims, which isn't permitted. The miscalculation resulted in higher premiums for 1,803 policies from July 2005 to July 2008.

"Everyone makes mistakes, even insurance companies," Insurance Commissioner Wayne Goodwin said in a prepared statement. The department's investigation was triggered by a consumer complaint.

Allstate already has begun sending out refunds, said department spokeswoman Kristin Milam.

Consumers with questions about the refunds can call the department's consumer helpline, 1-800-546-5664.