Several auto insurance companies have announced that due to a sharp decrease in driving, they will be refunding members a portion of their premium. So what does that mean for you?
The effects of coronavirus are being felt across all industries – including the insurance companies. With shelter-in-place orders reducing the amount of cars on the road, the likelihood of traffic accidents has gone down significantly. Insurance companies are benefiting from an estimated 85% decrease in accident claims that are typically paid out.
This has led several auto insurance companies to announce that they will be refunding their members a portion of their premiums over the next couple of months. In the midst of such turmoil, it’s good to see an industry sharing these benefits with their members.
Not all refunds will look the same and not all insurers are necessarily participating in the same type of program. Some companies will be offering a percentage of insurance premiums in credit towards their next renewal, while others are offering a percentage of premiums to be paid back over the next couple months.
Insurance companies currently offering refunds or credits include:
- American Family
- Liberty Mutual
It is likely that more auto insurance companies will follow suit in the coming weeks. For more information and updates in financial relief, be sure to check your insurer’s website. If your provider is not offering any kind of refund or discount, it may be worth it to consider changing your current policy. The reality is that if you’re not commuting to work and have limited your driving, there may be an opportunity to save money.