How Did Car Insurance Companies Decide On Their Refund Amounts?

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Car insurance refunds of 15% or 25% are now common due to less driving during the pandemic. But how did auto insurance companies calculate these amounts?

in the state to make an initial premium refund for the months of March and April within 120 days.

Shapiro notes that in early March mileage was “normal,” or what we might expect. As the pandemic spread and more states adopted stay-at-home orders, Allstate saw a significant countrywide reduction in miles driven. By mid-March, they saw an approximate 20% mileage reduction. Shapiro says that as of the first week of April, their data indicated there was up to a 50% reduction in mileage.

While Progressive Insurance could not provide any specific details into its decision-making for its 20% premium credits for April and May, the company indicated that its Apron Relief Program is a result of fewer claims that come with less frequent driving, a spokesperson said. Progressive says it will continue to monitor the situation and will do what it can based on the data available.

Ask your insurance company to re-rate your premiums based on your current mileage, not the mileage you used to drive.

 

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