Auto insurers are refunding more than $8 billion to customers during the COVID-19 pandemic following Newsy investigation
Newsy senior national investigative correspondent Mark Greenblatt recently reported on how the auto insurance industry was overcharging customers during the coronavirus pandemic given that more people are working from home and driving less. That means fewer cars on the road, fewer accidents, fewer insurance claims and lower premiums.
The insurers did not comment for Newsy’s first report, but our team kept pressing for answers. Early last week, Allstate announced that it will provide a “Shelter-in-Place Payback” of $600 million to its auto insurance customers. Shortly after, American Family Insurance offered $200 million in refunds. Geico then followed suit, promising its customers $2.5 billion in refunds, and Liberty Mutual agreed to pay back $250 million.
The impact to consumers has grown substantially since then. Shelter Insurance announced a 30% refund for its auto customers (the best in the industry so far), while USAA announced a 20% refund for its policyholders. Most recently, the nation’s biggest car insurer, State Farm, announced that it is slashing $2 billion of premiums owed on 40 million vehicles and giving its policyholders 20% off through May.
State Farm, Progressive Join List Of Auto Insurers Issuing Refunds
Insurers initially balked, but now most American drivers can count on getting a share of at least $8 billion in credits…
So far, insurers have collectively promised more than $8 billion in refunds since Newsy’s initial report, according to the Consumer Federation of America. CFA began pushing for changes weeks ago but says Newsy played a pivotal role in getting action for consumers. “You were the first big story out there, so I really give you a lot of credit for what is happening,” said Bob Hunter of the CFA.
What can you do?
If your auto insurer is not listed above, call them and ask for your own refund. Tell them about Newsy’s report and the refunds other insurers are giving their customers. Then, ask for your own refund.