Home Business Insurance companies reduce premiums amid coronavirus outbreak | TheHill

Insurance companies reduce premiums amid coronavirus outbreak | TheHill

Several major insurance companies are reducing premiums due to fewer claims amid social distancing measures put in place during the coronavirus pandemic. 

State Farm announced that a dividend of up to $2 billion will go to its auto insurance customers, who will receive a credit of about 25 percent of their premium for the time period of March 20 through May 31, though exact percentages will vary by state. 

The insurance giant noted it is receiving fewer claims as many Americans have begun working remotely and forgoing their commutes. 

“We see from our claims activity people are driving less,” State Farm president and chief executive Michael L. Tipsord said in a statement. “This dividend is one of the ways we’re working to help our customers during this unprecedented situation.”

USAA, one of the country’s largest property-casualty insurers, announced Wednesday it will be giving back $520 million to its members, noting that every member with an auto insurance policy as of March 31 will receive a 20 percent credit on two months of premiums in the coming weeks.

“We understand the impact this pandemic is having on our country, and especially our military community and their families, many of whom also are working on the front lines of the crisis. Returning premiums provides timely help for our members,” USAA chief executive Wayne Peacock said in a statement.

Other insurers, such as Liberty Mutual and Allstate, announced this week they are issuing a 15 percent refund on premiums. Geico announced Tuesday that it would return 15 percent credit on policy renewals between now and October.

Read More


Please enter your comment!
Please enter your name here

Most Popular

DHS Secretary Sets the Record Straight on Fake News on Portland Riots

Chad Wolf, acting secretary of the Department of Homeland Security, hit back at a press conference in DHS headquarters in Washington, D.C. on Tuesday against media reports that the Trump administrati…

Trump Raises $20 Million in First-Ever Virtual Fundraiser

President Donald Trump raised an eye-popping $20 million on Tuesday night in his first-ever virtual fundraiser, from a total of more than 300,000 individual donors who participated. This is a great …

ACLU: Constitution Requires Illegal Aliens Count Toward Congressional Apportionment

The American Civil Liberties Union (ACLU), as well as other migration lobbying organizations, claims it is “unconstitutional” not to count illegal aliens when apportioning congressional representatio…

US House poised to vote on reversing Trump’s Muslim ban

The United States House of Representatives is set to vote on Wednesday on legislation reversing President Donald Trump's controversial ban on immigration from Muslim countries. The bill, called the …

Recent Comments

Business and Economic News :: Debtly