As some auto insurance companies start giving refunds and credits to commuters stuck at home during the coronavirus outbreak, there’s an easy way drivers with other carriers can catch the same break — just pick up the phone and ask.
Farmers Insurance and its subsidiary, 21st Century Insurance, is giving drivers a 25% reduction in April premiums, the company said. USAA, a bank and insurer geared towards military members and their families, announced a 20% credit for auto policy holders on two months of premiums. Progressive Insurance also unveiled a 20% credit on the April and May premiums.
“You’ve got that leverage,” said Robert Hunter, director of insurance at the Consumer Federation of America. “They want to hold onto their customers, they’ve got to treat them right.” Policyholders can tell their company, “your risk is way lower, so my premium I paid is too high,” Hunter said. Another strategy could be to at least ask for an adjustment in the amount of mileage that’s factored into a premium, he added.
“Now that a few of the bigger companies are offering money-back, during a time when many really could really use it, it may be bad optics to resist,” she said in a statement. Even if insurers aren’t currently giving refunds or credits, they may be offering perks like lengthening grace periods or waiving late fees, she said.