Story updated with reaction from Allstate.

More than 2,400 Allstate customers from Delaware will receive refunds or credits totaling $428,355 after the auto insurer neglected to give them proper discounts for completing a defensive driving course.

Karen Weldin Stewart

Following consumer complaints, Delaware Insurance Commissioner Karen Weldin Stewart said in a statement that she requested that Allstate perform a comprehensive audit to look into the matter and determine which policyholders were due refunds or credits provided under state law.

Delaware law provides drivers who complete a certified defensive driving course with a 10% discount off the Personal Injury Protection (PIP) and liability components of their auto insurance premiums. Drivers completing a refresher course within the statutory time frame receive a 15% discount.

The discounts for successful completion of the course took effect Jan. 1.

Allstate, through the audit, determined that 2,445 policyholders did not receive the discount and subsequently notified them of the pending credit or refund.

In a statement to IFAwebnews.com, Allstate said it “regrets the computer programming error” that caused the correct discount from being applied to its Delaware customers.

“We made every effort to resolve this error as quickly as possible, and have now corrected all affected policies and provided the appropriate premium credits and refunds to all our affected customers,” the insurer said.

Weldin Stewart praised Allstate’s full cooperation with the audit and customer notification calling it gratifying that the company, “quickly recognized a problem existed and took the appropriate steps to rectify the situation.

“The defensive driving program is very important to me and to the department,” she said.  “Drivers completing a DOI-certified program come away with a heightened awareness of the rules of the road and the skills they learn help keep them, and all of us, safe.  The premium discount is a strong incentive for drivers to take a course, particularly in these tough economic times, and it is my responsibility to ensure that they receive it.”