Why Are Insurance Companies Returning Premiums

Auto insurers took the unusual step of returning a portion of premiums to policyholders because the companies had fewer accidents to cover.

Why are insurance companies returning premiums. Even if we re out and about in a month or so which i don t think we will be. Auto insurance companies are issuing refunds to customers because fewer people are driving due to coronavirus pandemic. While many other insurance companies have yet to announce rebates like these some are allowing customers to adjust premiums on a case by case basis for motorists who are suddenly not driving. 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.

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. As business shutdowns school closures and stay at home orders caused by the coronavirus outbreak cleared traffic from roads across the country many of the largest u s. Problems because of a loss of income can delay payments on insurance premiums without penalty if they contact. Auto insurance companies return 800 million in premiums because no one is driving.

Some of these companies are returning cash to customers because the risk. Returning premiums provides timely help for our members usaa chief executive wayne peacock said in a statement. 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. Most of us aren t getting 50 of our premiums back.