Reduced auto insurance premiums

[Chuckanut]

According to the WSJ some auto insurance companies are sending rebate checks to customers because the number of claims have plummeted. It seems we are driving so little that we are not crashing into each other very often.

Has anybody received a rebate check or heard that they would? So far my insurer is silent on the issue.

 

[candrew]

We are insured through Safeco and haven't heard anything. I read that other insurers may follow suit.

 

[Jerry1]

I haven't heard anything yet. We have AAA. I was thinking of sending our agent an e-mail since, as you said, it's been in news articles recently.

 

[REWahoo]

Why wait for your insurer to cough up money?

I posted in another thread that I reduced our annual auto premiums with USAA by $200 when I went online and dropped the annual miles driven by 40% for our three vehicles.

 

[fosterscik]

Allstate sent me an email saying they were doing a rebate. I'm told I don't need to do anything just wait for the credit. No idea how large at this point.

 

[Amethyst]

I asked some of the geckos in my yard, but GEICO has told them nothing.

 

[cathy63]

I haven't heard anything yet. We have AAA. I was thinking of sending our agent an e-mail since, as you said, it's been in news articles recently.

AAA gives back a dividend every year, or at least the ACSC chapter does. I'm just expecting this year's to be a bit more than usual.

 

[Walt34]

No word from Erie yet, but since we're already on "retired status" i.e., pleasure driving only, I don't really expect any change.

 

[PatrickA5]

Have heard nothing from State Farm. But, they usually only want to increase premiums - not decrease. Not holding my breath.

 

[sengsational]

Amica's policy is to send refund checks if claims are lower than expected (no share holders to grapple with). This next round, I guess the check will be bigger than usual.

 

[ncbill]

Sounds like I need to contact the office of our state insurance commissioner...

 

[bolt]

AFAIK, If vehicle's remain parked/garaged, or off the road, whilst still registered & carrying GEICO insurance GEICO returns 70% of the vehicle's premiums if these circumstance are discussed beforehand.

Consider this for seasonal vehicles.

Good luck & Best wishes!

 

[jim584672]

Geico providing $2.5 billion to customers through policy credits

 

[athena53]

Keep in mind that many of these companies require state insurance department approval, even for rebates of premiums. Mutual companies are able to declare dividends any time they want, but this isn't true of other legal structures.

I think it's a great idea, though. Next time they file for rate changes companies will be including premiums and losses from this period, and they have to figure out the impact of lower mileage- both in the experience period and going forward. Rebating it now will lower their net premiums so that this year's results will be closer to averages.

 

[frayne]

Have heard nothing from State Farm. But, they usually only want to increase premiums - not decrease. Not holding my breath.

+1

 

[jollystomper]

I asked some of the geckos in my yard, but GEICO has told them nothing.

Geico providing $2.5 billion to customers through policy credits

I received my letter from GEICO late last night. The 15% credit applies to policies renewing between April 8th and October 7. Mine just renewed on April 6, so I will have to wait a while . But, no worries here either way.

 

[MrsHaloFIRE]

read on Facebook that USAA is going to credit accounts. so please don't call them LOL

 

[SecondCor521]

read on Facebook that USAA is going to credit accounts. so please don't call them LOL

On USAA's home page right now:

"USAA to return $520 million to members.
At USAA, serving the military community is our mission. That’s more important now than ever as our members deal with the COVID-19 pandemic. USAA is returning $520 million to members with auto policies. Learn more about this action, special programs, tools and other steps we’re taking to help members during these uncertain times."

From the link it further states:

"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."

 

[USGrant1962]

With State Farm our cars are already listed as <7,500 miles driven per year so I wouldn't expect an immediate rebate due to fewer miles. Perhaps later this year if their accident experience actually drops. We regularly get adjustment checks from them.

 

[Just_Steve]

"With Less Driving, State Farm May 'Return Value' To Policyholders"

https://www.wglt.org/post/less-driving-state-farm-may-return-value-policyholders#stream/0

 

[oldphd]

We're long time State Farm customers. In the past, I've occasionally gotten a check as a partial refund. I was always under the impression there is some sort of regulation that controls how much profit they can have, or that they have to pay out at least some % towards claims, but I haven't seen that mentioned in any of the articles. Couldn't find it in a search. Am I off base here, or is there any possible truth to that.

 

[FireFool]

We're long time State Farm customers. In the past, I've occasionally gotten a check as a partial refund. I was always under the impression there is some sort of regulation that controls how much profit they can have, or that they have to pay out at least some % towards claims, but I haven't seen that mentioned in any of the articles. Couldn't find it in a search. Am I off base here, or is there any possible truth to that.

Your policy is written under a "Mutual" insurance company. This is where the policy holders are in effect owners of the company. Profits are distributed each year, similar to how a stock pays dividends.

 

[Montecfo]

Just got email from travellers. Cutting premiums 15 pct for April and May.

 

[Splash]

We got a letter today from American Family Insurance stating that we will get a $50 rebate for each car we have insured with them.

 

[ncbill]

Just got email from travellers. Cutting premiums 15 pct for April and May.

Ditto.

Cheap b******s.