Auto Insurance Companies Are Reaping Financial Rewards
The COVID-19 pandemic and subsequent orders to shelter in place have emptied Sacramento’s once-busy highways and streets. Traffic is reduced by an estimated 35 to 50%, even in states without an order to shelter in place. Fewer people driving means fewer auto accidents. Fewer accidents result in enormous savings for automobile insurance companies. In fairness, consumers should receive auto insurance refunds equal to the companies’ savings.
It is already quite obvious how much money automobile insurance companies rake in yearly. Just turn on the television, and you will be inundated with the Geico gecko, Flo from Progressive, and the “Limu Emu.” Those TV commercials are not cheap. The premiums refunded to customers will be far less than the insurance companies will save due to fewer accident claims. You can be 100% sure the refunds will not match their savings!
Automatic Premium Adjustments
Currently, three auto insurers have made the decision to issue premium refunds to their customers:
- Allstate has said it will be issuing $600 million in premium refunds. Allstate insures 18 million drivers, and all of those insureds will receive a 15% refund of their paid premiums. The refund will go to a credit card, bank account, or as a credit toward the customer’s Allstate account.
- American Family Insurance has decided to send $50.00 checks to each of its 2 million customers for $200 million in rebates. The CEO stated that they are trying to get the checks out as quickly as possible, given that so many families are experiencing financial hardship due to the pandemic.
- Geico jumped on board after Allstate and American Family Insurance automatically refunded their customers. Geico said it would issue a 15% premium credit for the customer’s next renewal bill. This procedure will apply to Geico’s 18 million automobile and motorcycle customers. Geico estimates the credits will amount to approximately $2.5 billion.
Request an Auto Insurance Refund
If you are insured by an automobile insurance company that has not yet initiated an automatic refund policy, you can and should request a refund directly. The value of your premium is dependent upon the estimated number of miles you drive your car per year.
Here is the procedure for requesting a premium adjustment or refund:
Call your insurer’s customer service line. Below, we have listed the main telephone numbers for some of the other major California auto insurance companies that have not yet announced an automatic premium adjustment:
- State Farm: (800) 782-8332)
- CSAA: (800) 922-8228
- USAA: (800) 531-8722
- Alliance United: (800) 508-5833
- Wawanesa: (800) 640-2920
- National General: (800) 462-2123
- Mercury: (800) 503-3724
- Progressive: (800) 776-4737
- Farmers: (888) 327-6335
- Liberty Mutual: (800) 290-7933
- Kemper: (800) 437-8394
- 21st Century: (877) 401-8181
- Infinity: (800) 782-1020
Tell the customer service representative that your weekly mileage has been significantly reduced since the quarantine efforts occurred. The shelter-in-place order for Sacramento County was enacted on March 20, 2020, and will remain in place until at least the end of April. The statewide California shelter-in-place order was enacted on March 19, 2020. The statewide order is estimated to extend through May 2020, although the exact end date is unknown.
If you are one of California’s many essential workers and have not experienced a reduced commute, please stay safe out there. Remember that although fewer cars are on the road, many drivers are speeding since the roads are empty, so when an accident occurs, it may be more severe.
Sacramento Personal Injury Lawyer
I’m Ed Smith, a Sacramento personal injury lawyer. An auto accident caused by a speeding driver can cause significant injuries. If one has been injured due to a speeding or otherwise negligent driver’s fault, please call me for free advice. The phone numbers at which I can be reached are (916) 921-6400 or (800) 404-5400.
I am a proud member of the Million Dollar Forum and the National Association of Distinguished Counsel.
For more than 38 years, I have advocated for injured Sacramento residents.
Many former clients have been kind enough to review my legal services. Those reviews can be read at the following sites:
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