Are Car Insurance Companies are Giving COVID-19/ Coronavirus Discounts and Rebates ?
In these articles, As Attorney Eric T. Kirk discussed the insurance industry contention that there is no direct correlation between premiums collected and the enormous profitability of automobile insurance companies. Industry analysts frequently point to the fact the many insurers routinely report underwriting losses, yet report profits in the millions, or billions. The insurance industry as a whole has, commendably, at least suggested some connection between premiums and claims related activity and profitability. It’s clear that with lockdown orders in effect in most states for most of the last month, traffic volume has fallen, and, correspondingly, new car accident claims activity has slowed substantially. Maryland car accident lawyers are filing fewer claims for their injured clients.
These car insurance companies have announced rebates and refunds due to decreased claims activity in the wake of the coronavirus / COVID-19 pandemic.
“Allstate: Issuing refunds equal to 15% of March and April auto premiums.
Encompass: Issuing refunds of 15% of March and April auto premiums.
Esurance: Issuing refunds equal to 15% of March and April auto premiums.
Farmers: Discounting April premiums by 25% discount or providing 25% refunds to customers already paid in full.
GEICO: The GEICO Giveback Credit will discount renewed or newly purchased policies between April 8 and October 7, 2020 by 15%. Customers can expect to save an average of $150 on their next auto policy and $30 per motorcycle policy.
Hartford: The COVID-19 Personal Auto Payback Plan will credit customers 15% of April and May auto premiums.
Liberty Mutual: Providing a 15% refund on two months of annual premiums.
State Farm Fire and Casualty Company: Distributing a credit equal to 27.5% of a policyholder’s premium from March 20 to May 31, 2020.
State Farm Mutual: The Good Neighbor Relief Program will distribute a dividend of approximately 25% of premium from March 20 to May 31, 2020.
Travelers: The Stay-at-Home Auto Premium Credit Program will issue a credit of 15% to April and May premiums.
USAA: Crediting approximately 20% on three months of premiums.
21st Century Insurance: Discounting April premiums by 25% discount, or providing 25% refunds to customers paid in full.”
This list is not, and is not intended to be exclusive. Many other insurance companies have offered similar rebates and refunds. These Articles are frequently critical of the claims practices of the auto insurance industry as a whole. In this instance- although it is clear that in the wake of the PPP backlash, insurers are likely aware that they could be the subject of additional criticism if they profited from a claims dearth windfall – the industry as a whole deserves a pat on the back for this one.