At least some drivers will now have more money in their pockets. One powerful state insurance regulator has agreed that insurers did not go far enough in their givebacks last year. And some disgruntled drivers are hoping to reclaim their money through a class-action lawsuit.

Consumer advocates hope that this is the start of a reckoning for car insurance companies, which will result in premium refunds for all drivers.

Here's what's going on right now that could result in more of your 2020 insurance premiums being returned to you.

One state regulator delivers

Car insurance is governed by state law. So far, only one state's regulators have demanded additional givebacks. However, it is a large and influential state, and experts say the move is an important first step.

Earlier this month, the California Insurance Commissioner ordered insurers to dig deeper into their pockets after determining that the average rebates issued to drivers in the state from March to September should have been double what drivers actually received, implying that additional rebates of 15% or more are possible. Officials discovered that the number and cost of claims decreased during those months, despite the fact that several insurers reported earnings that included significant increases in what they made from car insurance.

It is unclear when and how the premiums will be returned to drivers; the California insurance commissioner has given insurance companies until April 30 to announce a plan for the refunds.

“These insurance companies reported historic profits for their auto lines,” says Douglas Heller, an insurance expert with the Consumer Federation of America. He claims that the amounts they returned were insignificant in comparison.

California's move will not immediately benefit drivers in other states, according to Heller, but it is a step in the right direction. “For the time being, we have not seen the kind of response from other state insurance commissioners that consumers require and deserve,” he says.

Heller hopes that other state insurance commissioners will follow California's lead and press insurers to provide additional refunds to the many people who reduced their driving due to the pandemic. “This was a national event,” he explains. “Because of that reduction in risk, we were overpaying for auto insurance in every corner of the country.”

Class-action suits loom

Some motorists are not waiting for state insurance officials to act. Instead, they're going to court.

A Las Vegas-based law firm filed ten class-action lawsuits in February on behalf of Nevada drivers who it claims were overcharged by car insurance companies. The lawsuits filed against Geico, State Farm, Progressive, Allstate, Nationwide, USAA, Farmers, Travelers, Acuity, and Liberty Mutual allege that the refunds provided by these companies did not constitute "fair or meaningful relief."

Consumer watchdog associate at US PIRG, Jacob van Cleef, has mixed feelings about the legal challenges.

“It's good that it will bring more attention to the issue,” he says, but he adds that regulators who look out for consumers' interests are better served. “I don't want consumers to have to spend money and time to get something they are already owed,” he says.

Furthermore, legal actions can take a long time to resolve, according to van Cleef. “It is much faster to mandate these types of refunds than to go through the courts.”

What drivers can do

Heller encourages people to call their state's insurance regulator and ask them to reconsider last year's premium refunds. If you still work from home or have other circumstances that make driving difficult, he recommends double-checking your current policy to ensure that you weren't renewed using your old, pre-pandemic mileage estimate.

Van Cleef, for one, believes that as the spotlight shines brighter on this issue, it will only be a matter of time before other countries can no longer turn away. “As this gains traction, I wouldn't be surprised if other states take a look at it,” he says. “California has been at the forefront. What I believe it will do is demonstrate to other states that this is something they can and should do.”