Why Are Insurance Companies Returning Premiums

Health insurance companies and employers are lobbying congress for financial help warning that covid 19 treatment and testing may lead to large premium increases next year.

Why are insurance companies returning premiums. Auto insurance companies returning 800m in premiums during covid 19 two companies announced premium relief plans amid the coronavirus pandemic. Other insurers such as liberty mutual and allstate announced this week they. Returning premiums provides timely help for our members usaa chief executive wayne peacock said in a statement. Auto insurance companies return 800 million in premiums because no one is driving.

Auto insurance companies are issuing refunds to customers because fewer people are driving due to coronavirus pandemic. Even if we re out and about in a month or so which i don t think we will be. Most of us aren t getting 50 of our premiums back. Insurance companies need to extend this payback indefinitely.

Some of these companies are returning cash to customers because the risk. Problems because of a loss of income can delay payments on insurance premiums without penalty if they contact. Auto insurers took the unusual step of returning a portion of premiums to policyholders because the companies had fewer accidents to cover. Auto insurance companies including allstate geico and liberty mutual said they will give policyholders millions of dollars back because americans are driving less during the coronavirus pandemic.