Insurers Step Up: How COVID-19 is Driving Auto Insurance Refunds and Community Support

Auto Insurance Refunds

As the COVID-19 pandemic led to a significant reduction in driving, U.S. auto insurers responded by offering refunds and credits to their customers. According to the Insurance Information Institute, insurers are expected to return more than $10 billion to customers nationwide. For instance, Chubb is offering a 35% premium reduction for April and May, with an average credit of $110 per vehicle. Similarly, COUNTRY Financial announced a 15% refund for two months of auto premium, while CSAA Insurance Group is giving a 20% refund for March and April 2020.

Supporting Communities

Beyond financial relief to policyholders, many insurers have also stepped up to support their communities during the pandemic. Chubb, for example, has announced a support program for small business clients, including a 25% reduction in sales and payroll exposures and a 15% reduction in commercial auto insurance premiums. Additionally, Chubb will purchase $1 million in gift cards from small businesses to donate to healthcare workers and first responders.

Global Response and Data Insights

The response to COVID-19 has been a global effort, with insurers around the world contributing to relief efforts. Fundación MAPFRE, a global nonprofit foundation, announced a $2.3 million donation to support medical and community needs in Massachusetts, part of a $38 million global aid package. Swiss Re Group pledged CHF 5 million to support people and communities affected by the pandemic, particularly in developing countries. Data from the National Association of Insurance Commissioners (NAIC) shows that the average auto insurance premium decreased by 7.5% in 2020 compared to 2019, reflecting the impact of reduced driving and insurer refunds.

For consumers, it's important to stay informed about any refunds or credits offered by their insurer and to review their coverage needs in light of reduced driving. Additionally, supporting local businesses and communities can help mitigate the economic impact of the pandemic.