Two car insurance companies, Allstate and American Family Insurance policy to reimburse their customers millions of dollars because individuals are driving less throughout the coronavirus outbreak. “As circumstances change, the insurance industry is also required to make adjustments for agents and our clients,” says Ellsworth Buck, Vice President of Insurance, Florida's leading independent auto insurance agency.
On Monday, both auto insurance companies announced they will reimburse their customers per car that the household has insured with the company. People are driving less and the car insurance information mill experiencing fewer claims.
Other insurance providers are required to do likewise. While
acknowledging it is usually insufficient, insurance industry experts agree it's
a great initial step.
State Farm says they will choose premiums after a few days. While, Progressive says they are considering how to best return premiums to customers and will have a plan in position soon.
COVID-19 has numerous Floridians working from home and driving much less. The drop has resulted in a plummet in gas prices in the last month. AAA reports the typical gas price per gallon in Florida went from$2.40 to $1.89.
“Reimbursing is one way carriers are adapting to the sudden changes from this pandemic, “says Ellsworth Buck, V . p . of Insurance.
Insurance Journal has an article, “What Florida Agents Have to know During Coronavirus Crisis,” discussed is reimbursement and flexibility on terms. They spoke with Jeff Grady, President of Florida Association of Agents and that he said, “In the admitted market the thing is lots of national and regional carriers communicating to their policyholders and agents that they're likely to be flexible on terms, however the non-admitted market is a bit more distant with that and it is a little choppier in regards to what certain carriers might do-We're hoping and we're going to encourage the non-admitted market take a look at ways to assist the consumer.”
