The US market for auto insurance is massive beyond all means. Due to recent events, the auto industry has suffered in a number of ways. While US residents shelter-in-place and stay at home, the amount of cars on American roads has dwindled drastically.
As far as auto insurance is concerned, State Farm is the nations largest underwriter. Just a couple days ago the Insurance mogul announced that it would be offering $2 billion in refunds to policy holders.
State Farm has just joined several other nationwide insurers in an effort to support people through this difficult and financially uncertain time.
These refunds include almost every State Farm auto policy holder in the nation. Start Farm claims that it will be applying these cash returns to the weeks between March 30 and May 31.
“State Farm is returning value through a dividend to our customers. We insure more cars than anyone and we see from our claims activity that people are driving less. This dividend is one of the ways we’re working to help our customers during this unprecedented situation.”State Farm CEO Michael L. Tipsor
In order to qualify you must own a policy active between the March 30- May 31 dates and future bills will show the refunds subtracted from payments. Of course, always consult with your insurance agent for details and such.
How much is the refund worth?
State Farm spokesperson Angie Harrier said that policy holders will start seeing their credits reflected in June auto insurance statements. When all is said and done, customers of State Farm should see savings of around $20 per month per vehicle.
Keep in mind these amounts are limited and may vary from customer to customer depending upon the particulars of their policy. State Farm, an insurer that is not publicly traded, is owned by its customers.
The company strives to go above and beyond for its policy holders. Though it may not be the cheapest auto insurance, State Farm does rise to meet challenges for its customers.
Are people really driving that much less?
According to State Farm, their records show an estimated 35% decrease in the amount of time drivers spend on the road since the stay at home movement began in the wake of the novel coronavirus (COVID-19) pandemic.
Areas with higher or lower percentages of reduced driving time directly correlate to the various localities implementing “stay-at-home” orders. Insurers that are extending this gesture to customers seem to be telling their policy holders that they have some additional support. But it may not be enough if the trends continue.
Insurance agencies are proving their adaptability to change and a fierce willingness to stand by their coverage purchasers when facing unknown challenges.
Other big names in the auto insurance industry that have extended similar cash return gestures include Geico, Liberty Mutual, Progressive, and Farmers insurance. This movement demonstrates our nations ability to come together during hardship, even from a corporate standpoint.
It’s no fairytale, and you won’t be getting a check for $2 billion. But if you are a State Farm policy holder with coverage for 5 vehicles, you can expect somewhere around $200 off upcoming bills. It’s not astronomical, but it definitely helps.