State Farm gets an ‘A’ and GEICO a ‘D-‘ on report card of refunds or credits for driving less due to the coronavirus pandemic
Companies that sell more than 82 percent of the auto insurance in the United States have announced that they’ll be refunding or crediting drivers more than $6.5 billion over the next two months. The payments are due to the insurers’ savings from fewer auto insurance claims related to the huge reduction in cars on the road and miles driven during stay-at-home orders and other covid-19 precautions. The Consumer Federation of America and Center for Economic Justice contacted insurers and state insurance regulators to urge this type of relief in letters to commissioners sent on March 18 and March 30. The groups also assessed different approaches insurer could use for relief and a way to ensure fairness.