Insurance Companies refunding premiums because of reduced accidents due to shutdown.

The Sound Guy

Pursuit Driver
Article mentions that this is likely only a small percentage of what they are saving from lack of accidents, but still good of them.

Of course, *my* company is still just "thinking" about it.

Two insurers -- Allstate and American Family Insurance -- announced Monday they will give back about $800 million to their auto insurance customers because people are driving far less during the coronavirus crisis.
Allstate (ALL) said it will refund about 15% of premiums paid by its customers in April and May, which comes to a total of about $600 million.
"Given an unprecedented decline in driving, customers will receive a Shelter-in-Place Payback," said Allstate CEO Tom Wilson "This is fair because less driving means fewer accidents."
Allstate's payments will go to all US and Canadian customers with personal auto insurance, whether or not their state has any kind of stay-at-home order. American Family, which only serves customers in 19 states, also said its payments would go to all of its customers.


American Family Insurance said it will give back about $50 per car that a household has insured with the company via a one-time payment. It said that will total about $200 million.
 
USAA does this every year. If their claims experience is below estimates, they rebate the difference to customers. If there's a big hurricane or flood, there might not be much or anything. But most years I get over $100.
 
USAA does this every year. If their claims experience is below estimates, they rebate the difference to customers. If there's a big hurricane or flood, there might not be much or anything. But most years I get over $100.


USAA®

Message from the CEO
Dear Fellow Member,

We understand the impact this pandemic is having on our country, and especially the military community, many of whom also are on the front lines of the crisis. During these uncertain times, we recognize our members are stretched more than ever. We are working every day to provide assistance. Based on members driving less and fewer accidents, we are able to return $520 million to USAA members who have an auto insurance policy.

Every member with an auto insurance policy in effect as of March 31, 2020, will receive a 20% credit on two months of premiums in the coming weeks. All told, we're returning about $520 million. You will not need to call or take any other action.

Our 35,000 employees remain committed to providing great service to you — even when they do it from their home office or kitchen table. USAA has been facilitating the financial security of military members for nearly 100 years, and this is another way we serve you.

Respectfully,

ent-covidLanding-signature-Wayne.png

Wayne Peacock

Chief Executive Officer


 
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I am not eligible for USSA but if you are stick with them they are consistently ranked at the top. I am not a client of Allstate nor have I ever been. They have been sued more than any other large insurer I can think of. They consistently screw their customers more than most large insurers. They have more complaints than any large carrier I can think of. If they are so concerned about their customers why do they turned down more claims than anyone else? If they can give back damn near a billion dollars they can pay their damn claims. Sorry, this peach brandy is good, starting to sound like TP.
 
Another return of a portion of my premium ... I'll take it!

May 20, 2020, 8:59 AM (2 days ago)
to me

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Far West
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Continued Support in Trying Times
Dear Far West,

One result of the COVID-19 pandemic is fewer drivers on the road and fewer accident claims, so we're returning a portion of your premium to you. You will receive a second auto policyholder dividend equal to 20% of one month's worth of auto insurance premium. There is no need to call or take any action. The following amount will be credited to your next bill:

$XX.XX

Please visit usaa.com/coronavirus for more details on this dividend and other ways we're helping members through financial assistance programs. Our teammates are ready to assist with any questions.

We are honored to serve members every day and when they need us most, a commitment we've made to the military community for nearly 100 years. Thanks for your trust.

Respectfully,

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Wayne Peacock
President and CEO of USAA
 
We got a check from ours insurance company last week, I think it was for 15%. I'll take it.
 
Hmmm... the bill came in today... no discount on it. Wonder if we're supposed to get a check.

I'd take 15%. That would be $375 if you include the two kids' premiums.

Update:

Well, this sucketh bigtime:

JACKSON, Miss. (WTOK) - State Farm has announced the company will reduce automobile rates by approximately $2.2 billion. The rate reduction for Mississippi drivers will be approximately $45.3 million.
Each policyholder should receive approximately 9.5 percent in reduced premiums, effective Aug. 10, 2020

Update again:

Yeehaw: I can't wait. (Bah Humbug)

State Farm to provide a credit of 25%, on average, for the time period of March 20 to May 31
 
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I have our auto and home insurance bundled. I allow the insurance company to auto-deduct my premium payment from my bank account. They did not do that last month, but did this month. I not only didn't have to pay the insurance last month on the two cars, but my home as well.
 
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