To recognize that policyholders are driving less during the growing coronavirus crisis, insurance companies are offering premium discounts on auto insurance.
Although several operators are also targeting commercial customers, most of the discounts are for personal line customers. According to the Insurance Information Institute, these and other auto insurers have announced refunds, deductions, dividends and credits totaling $ 8.1 billion. Check the list of insurers and a summary of their discounts and other offers so far here. (INSERT LINK).
Telematic data shows that people are driving between 35% and 50% fewer miles in most states. Consumers pay premiums based on an estimated 1,000 miles per month. However, now, they drive 200 miles per month because they work from home or because their businesses are closed. These individuals should get relief from auto insurers. When the number of cars on the road drops dramatically, the likelihood of an automobile accident also decreases significantly.
Insurers have been asked to discount auto insurance premiums since people are driving less under local shelter orders. This is an area in which insurers have been able to respond. Allstate, American Family, Geico, Travelers, Liberty Mutual, Progressive, Farmers, State Farm, Nationwide, Hanover, NFP, USAA, CSAA, Erie and Plymouth Rock are on the growing list of insurers that have collectively forgiven billions of dollars in premiums for drivers. Several insurers are also giving free insurance to those who now use their cars for commercial deliveries, and most are relaxing terms and terms of payment and cancellation.
Allstate said that all personal car insurance customers for Allstate, Esurance, and Encompass will receive 15% of their monthly premium in April and May, totaling more than $ 600 million. Erie Insurance will file an order to reduce fees by $ 200 million in total for personal and commercial auto insurance customers in 12 states and the District of Columbia. This is not for short term car insurance discounts. Farmers Insurance will provide relief to more than 115,000 of its business insurance clients in the restaurant, office, retail, and services sectors across the country through a 20% monthly credit on the Business Owners Policy for the next two months.
Freedom Insurance Agency represents a number of highly respected, top-rated national and regional insurance companies. As an independent insurance agency in Maryland, we work for our clients, not for insurance companies. Our professional staff is committed to providing outstanding customer service. It’s often said that you’re only as good as the company you keep.
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