With most of the country operating under stay-at-home orders, consumer and commercial drivers are spending less time on the road — which means fewer accidents and insurance claims. The top 10 insurers, who together own 72% of the market, have all announced programs to return more than $7.5 billion to their customers in coming weeks. Most of the insurers have also announced other programs to help policyholders, including allowing them to defer premium payments and a moratorium on canceling policies for non-payments.”


The amounts being returned range from about 15% to 25% of premiums, for periods as short as a month at Farmers Insurance Group of Companies to as long as six months.

Here are some of the amounts announced during the first week of April.

State Farm | Will return 25% of premiums for a period of 10 weeks, from March 20 through the end of May. Amounts to an estimated $2 billion in reduced premiums for customers.

Geico | Will return a total of $2.5 billion through credits on six months of insurance coverage when current policyholders renew their policies or new policyholders sign up. Most of those granting relief to their clients are basing the payout on the premiums paid in the April and May period. 

Allstate | Will refund about 15% of premiums paid by its customers in April and May, which comes to a total of about $600 million.


It’s likely other insurers will also make some sort of deal with car insurance policyholders, said Penny Gusner, senior consumer analyst at CarInsurance.com, a website that compares price quotes. “Now that a few of the bigger companies are offering money-back, during a time when many really could really use it, it may be bad optics to resist,” she said in a statement.


From late March to early April, personal travel traffic in the U.S. dropped 47% compared to traffic in late February, data showed.


GettyImages

Related Articles

8
How Coronavirus is Affecting Small Businesses in Some States More Than in Others

87% percent of small business owners surveyed said their business is hurting from coronavirus.

9
Update: Lawmakers and President on the Verge of Striking a Funding Deal

The deal may be agreed upon as early as Monday (4.20.2020)

10
80% of Small Business Loan Applicants Are Still Waiting

In a recent NFIB survey, 65% of the participants said they don’t believe the economy will fully recover until 2022.

11
SBA Slashes Disaster-Loan Limit from $2 million to $150,000

After initially telling businesses that individual disaster loans could be as high as $2 million, SBA has now imposed a $150,000 limit.

12
IRS Announcements Provide Guidance on Small Business Tax Issues and Tools

Do you have a tax-related question? You may find the answer here.

13
Coronavirus (COVID-19): Small Business Guidance & Loan Resources (SBA)

Recommended strategies that employers can use now.

14
President Trump Signs Small Business Loan Funding Bill

Funding package increases aid to small businesses, hospitals and Covid-19 testing.

15
Lawmakers, Officials are Preparing Significant Changes to PPP Loan Program

Both changes follow small business owners who say they can’t hire back staff while they are closed during the coronavirus pandemic.