Auto insurance givebacks: Are policyholders getting a good deal?

It’s safe to say the coronavirus has dramatically changed American culture — even down to the way we drive. Most businesses have gone remote, and distance learning is at an all-time high. On top of that, many restaurants are closed, as well as most beaches and public parks. In other words, there aren’t as many places to drive as there once were.

Of course, this has very few negatives — if any.

The less we drive, the more likely we are to have cheaper car insurance. On top of that, the less we drive, the fewer emissions we create. We should always be making a conscious effort to preserve our planet.

Related: U.S. auto insurers face backlash for ‘inadequate’ COVID-19 refunds

In March 2020, parts of America saw a 60% decrease in driving mileage, and the average auto insurance premium decreased by up to 25% in spring 2020. In response to the sharp drop in driving, many of America’s top insurers began refunding auto insurance premiums.

In total, $14 billion has been returned to policyholders. At its largest, $4.2 billion in savings has been reported for State Farm customers, followed by the $2.5 billion in total refunds administered by Geico. Returning nearly the same figures, Progressive and Allstate have both contributed approximately $1 billion in total policy paybacks. Although these figures are impressive, it has left many wondering if a total refund is coming.

Check out the below infographic to see which factors contribute to complete auto policy refunds and the possible implications of autonomous vehicles on insurance premiums.

Source: AutoInsurance.org

Demetrius Harrison is an international business and economy reporter and is also a promotions specialist and project manager at NowSourcing, Inc., an award-winning infographic design agency based in Louisville, Ky., and Cincinnati, Ohio. He can be reached via email at demetrius@nowsourcing.com. The opinions expressed here are the author’s own.