With empty freeways, fewer cars and trucks on our roads and not as many crashes as before, this era of staying at home during the coronavirus crisis may put some money in your pocket.
Virtually all of the major U.S. vehicle insurance companies have announced they will be either offer their customers rebates or temporarily lower their monthly insurance premiums.
Here’s a roundup of what the insurers intend to do:
- Allstate said it will reduce premiums by 15% for the months of April and May.
- Geico said that its auto customers will see an average of about $150 credit on their policies.
- USAA will reduce auto premiums 20% in April and May.
- Farmers will be reducing April premiums by 25%.
- Liberty Mutual will give customers a 15% discount for two months of an annual contract.
- State Farm said it expects to announce their rebates later this week.
Money for the rebates and the premium reductions is made possible by insurers not having to pay out claims from wrecks. Data from California is typical for other states. There, driving is down 60% and the number of crashes has been cut in half since officials gave stay-at-home orders.
When added together, the big insurers will be paying back a total of over $4 billion to policyholders in the months ahead.
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