# Texas Seeks Penalties from Insurers for Betterment 

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Texas Attorney General John Cornyn has filed lawsuits against 16 major auto insurance groups alleging that the companies illegally underpaid auto repair claim payments to some of their Texas policyholders. The lawsuits claim the insurers violated Texas law by taking illegal deductions for betterment or depreciation on some of their policyholders‘ repair claims.

"Deduction for betterment or depreciation on policyholders‘ auto repair claims has been an industry custom in Texas," said Cornyn. "But the personal auto insurance policy does not allow it. Several companies have informed us that they have recently stopped reducing claim payments for betterment, and I applaud this step. However, I intend to make sure that policyholders get the refunds they are entitled to and that all companies play by the same rules."