Auto Insurance Premium Refund During COVID-19
The Coronavirus disease (“COVID-19”) has rapidly spread throughout the United States over course of the past two months. The rapid spread of the virus has resulted in stay-at-home orders throughout the country with the majority of businesses either requiring all employees to work from home or shutting down completely. These changes have resulted in a significant decrease in the amount of vehicles on the roadway each day. Given the decrease of roadway traffic and resulting crashes, car insurance companies throughout the country have made announcements over the last several weeks of their intentions to issue auto insurance refunds, credits or rate reductions to their customers. Examples of these announced actions having included:
- State Farm announcing that it would give policyholders a credit of 25% on premiums paid for the period of March 20 – May 31, 2020, resulting in the company returning two-billion dollars to its policyholders.
- GEICO announcing a 15% premium credits to its policyholders on their next six-month or twelve-month policy term.
- Progressive and USAA announcing 20% premium reductions for two months of premiums for their policyholders.
- Liberty Mutual announcing 15% premium reductions for two months of premiums for their policyholders.
- Nationwide announcing a one-time premium refund of $50 per policy for personal auto policies active as of March 31, 2020.
The thought of car insurance companies giving auto insurance refunds to customers may seem at first glance too good to actually be true. However, the risk of an insured driver being involved in an accident is significantly lowered by the fact that far fewer miles are being driven on roadways which have significantly less traffic than they would typically have. As a result, companies have been paid premium dollars based upon a risk assessment that has now in reality been decreased substantially by the impact the coronavirus has had on consumer traffic. Each of the insurance companies referenced in this article and numerous additional companies have information on their company websites as to the actions they are taking in response to the coronavirus. Additional information concerning your own insurance carrier should be available through their company website or reaching out to your carrier by telephone.
Our office remains dedicated to assisting our clients and their families during this unprecedented time. Should you have questions concerning a motor vehicle accident or actions taken by your insurance company, please contact Sam Aguiar Injury Lawyers at 502-400-6969.