Some auto insurance companies start giving refunds and credits to commuters stuck at home during the coronavirus outbreak.
Atlanta traffic
USAA, the country’s fifth largest property-casualty insurer, will return $520 million to its members. This payment is a result of data showing members are driving less due to stay-at-home and shelter-in-place guidance across the country.
Car traffic has plummeted as states impose “shelter in place” orders and scores of companies have told employees to work from home. Personal travel has been declining for three straight weeks, according to Inrix, a traffic data analytics company. From late March to early April, personal travel traffic in the U.S. dropped 47% compared to traffic in late February, the data showed.
Consumers are driving much less. That makes the driver less risky to insure and justifies a lower premium.
The nation’s biggest car insurer, State Farm, is slashing $2 billion of premiums owed on 40 million vehicles, making it the latest carrier to offer a financial-relief program for consumers as auto claims have plunged under shelter-at-home restrictions.
References:
- https://www.marketwatch.com/story/some-auto-insurers-are-giving-refunds-because-of-the-coronavirus-outbeak-heres-how-you-can-get-a-break-too-2020-04-09?mod=mw_more_headlines
- https://communities.usaa.com/t5/Press-Releases/USAA-to-Return-520-Million-to-Members/ba-p/228150?_ga=2.74504658.1537537724.1587742333-1534249610.1587742333
- https://www.marketwatch.com/story/state-farm-to-slash-2-billion-in-car-insurance-premiums-amid-pandemic-2020-04-09?mod=article_inline