State Farm says it might offer insurance refunds by Friday.

[Tactical Peek]

Source: Newsy


April 8, 2020

State Farm says it might offer insurance refunds by Friday.

State Farm, the nation's largest auto insurer, tells Newsy it is likely to act this week after its competitors promised to refund billions of dollars to consumers. It is the latest fallout after our Newsy investigation took on the insurance industry for overcharging consumers during the coronavirus pandemic.

Last week State Farm told Newsy it had nothing to say in response to allegations the insurer and others were overcharging drivers who are mostly off the roads now and staying at home. By Monday, Allstate had announced a $600 million refund for drivers. American Family Insurance offered $200 million. By Tuesday, Geico followed suit, promising its customers two billion dollars in refunds. Liberty Mutual threw in 250 million dollars.

Wednesday, USAA announced a 20 percent refund for its policyholders, which it says amounts to $520 million. Shelter Insurance announced a 30 percent refund for its auto customers, the best in the industry so far. Unlike Geico, which will make customers wait until their policy renews to collect, Shelter Insurance said it intends to get its money out the door as soon as possible. All in all, by midweek, insurers had collectively promised more than $4 billion in refunds since Newsy’s report, where the Consumer Federation of America said insurers were acting illegally.

"You were the first big story out there so I give you a lot of credit for what’s happening," Bob Hunter of the Consumer Federation of America said of Newsy's report.



Read more: https://www.newsy.com/stories/auto-policyholders-due-4-billion-in-refunds/

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This is a reasonable flow of money.

Bravo to Newsy for the investigative type journamalism.

[helpisontheway]

1. Meanwhile Geico is only offering 15% off future policies. Nt

Last edited Wed Apr 8, 2020, 09:26 PM - Edit history (1)

[oldsoftie]

10. And policies that renew between now and October

[durablend]

12. And what do you want to bet

They'll jack the premium up at renewal and give you the discount so the premium stays the same (until *next* renewal)

[oldsoftie]

13. I doubt it. It would be SO obvious. Plus all these other companies are refunding too.

But I'll know in a few months when MY renewal shows up!

[DURHAM D]

2. My guess - they will just offer discounts next time premium is due. nt

[NickB79]

3. I called my agent at lunch today

She said refunds were coming.

[DURHAM D]

4. State Farm?

[NickB79]

5. Yes.

She couldn't give many other details, though. Guess ill just wait and see.

[BlueIdaho]

6. I got something from my agent.

State Farm is offering refunds - but it’s not much. 15% for two months. Refund depends on how you make your payment. They are also ceasing cancellation for non-payment.

[bucolic_frolic]

7. Is this based on fewer miles driven and fewer accidents during coronavirus?

I doubt I'll get a dime, but those insurers simply aren't competitive with the company I use. I've had one or two of them and they were way up there. Liberty Mutual is supposed to be the biggest. Farmer's not mentioned?

As an aside, the 'A' 'S' and 'L' keys on my laptop are wearing through. The plastic have these little craters in the middle from 11 years usage. I doubt I'll repair them when the time comes. Core2 Duo was a good (used) investment, the original hard drive went belly up 3 years ago, which was a good happenstance as it ditched Vista. I figure the original hard drive had about 45,000 hours on it. The DVD drive wore out too. Newer, smaller drive runs Linux. I like it.

There. Thanks for the space for my vent.

[Beartracks]

20. "This Space for Vent"

===========

[SergeStorms]

8. Wait......is this The Onion?

Insurance Companies are giving money back to their customers?

Borowitz's name has to be on here somewhere, but I can't seem to find it.

[NutmegYankee]

9. No satire.

Insurance companies got busted for still charging rates based on high usage of cars when many are home all the time.

[greyl]

18. I'd bet their profits are still way up even after the refund.

Still surprising, though.

[LeftofObama]

11. Progressive is giving 20% on your April premium and another

20% on your May premium.

[TomSlick]

14. While this is good news for most folks,

I make my living defending lawsuits from auto claims. No claims - no cases - no money.

[sarcasmo]

15. I might be a millionaire by Friday.

[2naSalit]

16. That's good to know...

I have two vehicles insured with them and both policies come due in the next two months.

[Polybius]

17. Any idea what Country Wide will do?

Hoping for them to do the right thing.

[James48]

19. I have USAA

And got the notice of a 20% refund due to parked cars. Our state did it’s “stay home” starting March 23, and I went from driving 300 miles a week to a total of 12 miles done then.

It’s something. I’ll take it.

[matt819]

21. Like so much else regarding the money that is "soon coming"

I'll believe it when I see it. Right now? I don't believe we're going to see any refunds, rebates, or the promised money from the Economic Impact Disaster Loan program, the Paycheck Protection Program, or the $1,200 payments. I'll be pleased if it happens, but we're at the point now - and have been for many years - where you simply cannot believe anything coming from large corporations, billionaires, or the federal government.

[Xolodno]

22. Farmers is dropping rates....

https://finance.yahoo.com/news/farmers-21st-century-branded-automobile-213000654.html

Move Follows on the Heels of Recent Announcements Providing Help to Business Insurance Customers as Well as Payment Flexibility Options

WOODLAND HILLS, Calif., April 8, 2020 /PRNewswire/ -- Farmers® and 21st Century® branded auto customers will receive a 25% reduction in April premium to reflect the changed driving environment resulting from various stay-at-home guidelines issued across the country. The national insurer has also implemented flexible payment plans and a temporary pause on cancellations to help relieve some of the financial stress being felt by customers.

[wishstar]

23. Auto-Owners says their rebate is 15% of April and May premiums-so mine will be less than $30

Wow, what a windfall

[SharonClark]

24. Nationwide Auto is sending a check for $50

to all policy holders as of March 31. That’s a whopping 5% of the annual fee for me.

I think it should be twice that.