[Auto insurance companies issuing refunds due to coronavirus]

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pshonore
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[Auto insurance companies issuing refunds due to coronavirus]

Post by pshonore » Mon Apr 06, 2020 9:27 am

[Title was "Allstate offers 15% [car insurance] rebate for reduced driving". Use this thread for all insurance companies --admin LadyGeek]

Allstate said Monday that it will pay out more than $600 million to auto insurance customers over the next two months as part of its Shelter-in-Place Payback plan, given the unprecedented decline in driving amid the COVID-19 pandemic. Most customers will receive 15% of their monthly premium in April in May, paid as a credit to their bank account, credit card or Allstate account.

https://www.thestreet.com/investing/all ... r-2-months

Hope their competitors do likewise

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Re: Allstate offers 15% rebate for reduced driving

Post by bob60014 » Mon Apr 06, 2020 11:42 am

Lack of MAYHEM on the roads! Good move by them.

czaj
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Re: Allstate offers 15% rebate for reduced driving

Post by czaj » Mon Apr 06, 2020 11:56 pm

They specifically mention “monthly premiums”; hopefully it also applies for those who pay their 6-month premium in full.

DSInvestor
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GEICO 15% credit for auto/motorcycle renewal

Post by DSInvestor » Tue Apr 07, 2020 9:18 pm

[Thread merged into here, see below. --admin LadyGeek]

GEICO just announced 15% credit for auto/motorcycle policy renewals between 4/8/2020 and 10/7/2020. They have a pause on policy cancellation for non payment through 04/30/2020.
https://www.geico.com/about/coronavirus/
GEICO wrote:The GEICO Giveback Credit

GEICO is providing a 15 percent credit to our auto and motorcycle policyholders as your policy comes up for renewal between April 8 and October 7, 2020. The credit will also apply to any new policies purchased during this period. The credit is part of our ongoing efforts to assist policyholders during this unprecedented time.

The average auto policy has a semi-annual premium of about $1,000 and generally covers more than one vehicle. This means we expect credits to average about $150 per auto policy and $30 per motorcycle policy. We estimate the benefit to our 18 million auto and one million motorcycle policyholders to be approximately $2.5 billion.
bold = my emphasis
Last edited by DSInvestor on Tue Apr 07, 2020 9:31 pm, edited 1 time in total.
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Re: GEICO 15% credit for auto/motorcycle renewal

Post by JAZZISCOOL » Tue Apr 07, 2020 9:28 pm

Safeco just posted something similar on their website (for 2 months of premium; auto policy):

A message to our customers about the Coronavirus
At Safeco, the well-being of our customers and employees is always our top priority. We recognize the uncertainty and financial challenges many of you are facing as the nation bands together to slow the spread of the coronavirus. To help our customers, we have taken the following actions:

Personal Auto Customer Relief Refund
Fewer drivers are on the road, which means fewer accidents. With this in mind, we are announcing our Personal Auto Customer Relief Refund, which will return an estimated $250 million to our personal auto insurance customers. Here’s how it works:

Personal auto insurance customers will receive a 15% refund on two months of their auto premiums, as of April 7, 2020, pending regulatory approval.
The refunds will begin in April and will be issued either by check or in the manner you made your most recent payment.
The payments will happen automatically, and you do not need to call us to receive the refund.

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Re: GEICO 15% credit for auto/motorcycle renewal

Post by DSInvestor » Tue Apr 07, 2020 9:33 pm

JAZZISCOOL wrote:
Tue Apr 07, 2020 9:28 pm
Personal auto insurance customers will receive a 15% refund on two months of their auto premiums, as of April 7, 2020, pending regulatory approval.
I saw something similar for Allstate - 15% refunds on their monthly premiums for April and May
https://www.allstate.com/covid.aspx?int ... id19200406

GEICO seems to be offering 15% credit for the entire 6 month policy cost.

I assume this will ripple out to other insurance providers.
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Re: GEICO 15% credit for auto/motorcycle renewal

Post by BruDude » Tue Apr 07, 2020 9:54 pm

As a GEICO policyholder, I approve. 😎

Alan S.
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Re: GEICO 15% credit for auto/motorcycle renewal

Post by Alan S. » Tue Apr 07, 2020 10:03 pm

Geico may be anticipating that these stay at home orders are going to last nearly 6 months. Either that, or their loss reduction is more like 45% instead of 15%.

It probably is closer to 45% given that the air pollution in places like LA is drastically reduced by a huge reduction in driving. There is very good correlation between time on the road and exposure to auto losses, except possibly for comprehensive coverage.

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Re: GEICO 15% credit for auto/motorcycle renewal

Post by Small Savanna » Tue Apr 07, 2020 10:13 pm

With so many people staying at home and not driving, claims must be way down. I filled up my gas tank two weeks ago and it's still full. If premiums were proportional to miles driven, I'd expect about a 90% credit for March, April, and May.

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Re: GEICO 15% credit for auto/motorcycle renewal

Post by Alan S. » Tue Apr 07, 2020 10:26 pm

American Family Ins. is mailing a check for $50 per each vehicle insured on 3/11/2020.

Since this policy is catching on quickly, most companies will feel the pressure to follow suit.

No credit on Homeowners policies yet from anyone. For this coverage a big reduction in burglaries due to staying home may be offset by increased exposure to fire losses from cooking, smoking at home, etc.

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Re: GEICO 15% credit for auto/motorcycle renewal

Post by Mr.Wu » Tue Apr 07, 2020 10:39 pm

I literally just renewed yesterday.

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Re: GEICO 15% credit for auto/motorcycle renewal

Post by DSInvestor » Tue Apr 07, 2020 10:41 pm

Mr.Wu wrote:
Tue Apr 07, 2020 10:39 pm
I literally just renewed yesterday.
Please let us know if they take care of you.
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Re: GEICO 15% credit for auto/motorcycle renewal

Post by confusedinvestor » Tue Apr 07, 2020 10:44 pm

Yep, your reasons is dead on, per this podcast :-)

https://www.wsj.com/podcasts/your-money ... E0285F819D
Small Savanna wrote:
Tue Apr 07, 2020 10:13 pm
With so many people staying at home and not driving, claims must be way down. I filled up my gas tank two weeks ago and it's still full. If premiums were proportional to miles driven, I'd expect about a 90% credit for March, April, and May.

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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by beyou » Tue Apr 07, 2020 11:18 pm

I have umbrella with them, and clearly there is less risk of auto related umbrella claim. They should rebate on that policy as well.

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CardinalRule
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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by CardinalRule » Tue Apr 07, 2020 11:42 pm

I wonder if homeowner-related claim risk could actually be higher, due to more people at home?
beyou wrote:
Tue Apr 07, 2020 11:18 pm
I have umbrella with them, and clearly there is less risk of auto related umbrella claim. They should rebate on that policy as well.

JimmyC
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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by JimmyC » Wed Apr 08, 2020 12:02 am

For umbrella, liability-wise, probably not since everyone is avoiding potential claimants (i.e. friends and family).

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beyou
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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by beyou » Wed Apr 08, 2020 6:45 am

Good points. I think these companies are only going to focus on auto since that has mass PR appeal. Umbrella is a first world problem, not going to get the same PR value. Many will say “what’s umbrella insurance” if this discount was advertised ;-)

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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by A440 » Wed Apr 08, 2020 7:50 am

GEICO is doing the same for policy renewals between April and October.
I don't know what the future holds, but I know who holds my future.

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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by dukeblue219 » Wed Apr 08, 2020 8:11 am

A440 wrote:
Wed Apr 08, 2020 7:50 am
GEICO is doing the same for policy renewals between April and October.
GEICO is doing it for the full six months worth of premiums too

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dwickenh
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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by dwickenh » Wed Apr 08, 2020 8:29 am

Esurance, an Allstate company, is also giving the 15% rebate for March-May. I received an e-mail from them yesterday stating the rebate information.
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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by BGeste » Wed Apr 08, 2020 10:56 am

dukeblue219 wrote:
Wed Apr 08, 2020 8:11 am
A440 wrote:
Wed Apr 08, 2020 7:50 am
GEICO is doing the same for policy renewals between April and October.
GEICO is doing it for the full six months worth of premiums too
What Geico is doing is much better for consumers than what Allstate and American Family are proposing.

Where are the other companies? USAA, State Farm, Nationwide, Liberty Mutual, Farmers, Progressive, etc. Crickets from them. :annoyed

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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by Housedoc » Wed Apr 08, 2020 11:24 am

dwickenh wrote:
Wed Apr 08, 2020 8:29 am
Esurance, an Allstate company, is also giving the 15% rebate for March-May. I received an e-mail from them yesterday stating the rebate information.
I got the email also. Let's not spend it all in one place. I will take it 😁

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dwickenh
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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by dwickenh » Wed Apr 08, 2020 11:30 am

BGeste wrote:
Wed Apr 08, 2020 10:56 am
dukeblue219 wrote:
Wed Apr 08, 2020 8:11 am
A440 wrote:
Wed Apr 08, 2020 7:50 am
GEICO is doing the same for policy renewals between April and October.
GEICO is doing it for the full six months worth of premiums too
What Geico is doing is much better for consumers than what Allstate and American Family are proposing.

Where are the other companies? USAA, State Farm, Nationwide, Liberty Mutual, Farmers, Progressive, etc. Crickets from them. :annoyed
Give them time, competition is not immediate, but will likely show up.
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by drizzleray » Wed Apr 08, 2020 11:49 am

dwickenh wrote:
Wed Apr 08, 2020 11:30 am
BGeste wrote:
Wed Apr 08, 2020 10:56 am
dukeblue219 wrote:
Wed Apr 08, 2020 8:11 am
A440 wrote:
Wed Apr 08, 2020 7:50 am
GEICO is doing the same for policy renewals between April and October.
GEICO is doing it for the full six months worth of premiums too
What Geico is doing is much better for consumers than what Allstate and American Family are proposing.

Where are the other companies? USAA, State Farm, Nationwide, Liberty Mutual, Farmers, Progressive, etc. Crickets from them. :annoyed
Give them time, competition is not immediate, but will likely show up.
USAA announced their response this morning: https://communities.usaa.com/t5/Press-R ... 1561212664

BGeste
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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by BGeste » Wed Apr 08, 2020 11:52 am

drizzleray wrote:
Wed Apr 08, 2020 11:49 am
dwickenh wrote:
Wed Apr 08, 2020 11:30 am
BGeste wrote:
Wed Apr 08, 2020 10:56 am
dukeblue219 wrote:
Wed Apr 08, 2020 8:11 am
A440 wrote:
Wed Apr 08, 2020 7:50 am
GEICO is doing the same for policy renewals between April and October.
GEICO is doing it for the full six months worth of premiums too
What Geico is doing is much better for consumers than what Allstate and American Family are proposing.

Where are the other companies? USAA, State Farm, Nationwide, Liberty Mutual, Farmers, Progressive, etc. Crickets from them. :annoyed
Give them time, competition is not immediate, but will likely show up.
USAA announced their response this morning: https://communities.usaa.com/t5/Press-R ... 1561212664
USAA discount on only 2 months of premium. Kinda sucks compared to Geico.

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rob
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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by rob » Wed Apr 08, 2020 11:57 am

Have to wonder what the real reduction in their costs were... FAR more than 15% I would bet.
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camillus
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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by camillus » Wed Apr 08, 2020 12:24 pm

Had my second car put into “storage” and saved ~$500 off an annual premium in Michigan.

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Re: GEICO 15% credit for auto/motorcycle renewal

Post by MTwallet » Wed Apr 08, 2020 1:07 pm

What if my policy has already renewed in March?
You won’t miss out. The credit will be applied to your next renewal.

https://www.geico.com/about/coronavirus/

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Re: GEICO 15% credit for auto/motorcycle renewal

Post by BGeste » Wed Apr 08, 2020 1:15 pm

Geico's six month reduction is much better than the other companies offering 2 month reductions. Glad to be a Geico policyholder. :happy

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Re: GEICO 15% credit for auto/motorcycle renewal

Post by Mountain Doc » Wed Apr 08, 2020 1:23 pm

DSInvestor wrote:
Tue Apr 07, 2020 9:18 pm
The average auto policy has a semi-annual premium of about $1,000 and generally covers more than one vehicle.
I have two vehicles insured by GEICO and my semi-annual premium is $330, which includes their maximum liability limits. I'm amazed their average premium is 3 times that.

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Re: GEICO 15% credit for auto/motorcycle renewal

Post by surfstar » Wed Apr 08, 2020 1:31 pm

DSInvestor wrote:
Tue Apr 07, 2020 10:41 pm
Mr.Wu wrote:
Tue Apr 07, 2020 10:39 pm
I literally just renewed yesterday.
Please let us know if they take care of you.
They'll probably catch the discount on 10/6/2020

A full 6-month discount time-frame should catch all policy renewals.

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Re: GEICO 15% credit for auto/motorcycle renewal

Post by eye.surgeon » Wed Apr 08, 2020 1:39 pm

I called Geico hours before this announcement and the CSR recommended I lower the annual mileage to the lowest option which is 250 miles. He said Geico is good with that until June. He did it for me and it lowered my premium about $200 for 6 months, there are 4 cars on the policy. This is in addition to the 15% discount presumably.
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Re: GEICO 15% credit for auto/motorcycle renewal

Post by Mr.Wu » Wed Apr 08, 2020 2:00 pm

surfstar wrote:
Wed Apr 08, 2020 1:31 pm
DSInvestor wrote:
Tue Apr 07, 2020 10:41 pm
Mr.Wu wrote:
Tue Apr 07, 2020 10:39 pm
I literally just renewed yesterday.
Please let us know if they take care of you.
They'll probably catch the discount on 10/6/2020

A full 6-month discount time-frame should catch all policy renewals.
Yes that's from the FAQ.

I called GEICO and the lady told me they are going through the recent renewals. I will be receiving a refund but it may take some time.

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Re: GEICO 15% credit for auto/motorcycle renewal

Post by midareff » Wed Apr 08, 2020 2:04 pm

and they recently reduced my rates (one car) about $450 a year based on experience with the model.

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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by talzara » Wed Apr 08, 2020 4:38 pm

BGeste wrote:
Wed Apr 08, 2020 10:56 am
Where are the other companies? USAA, State Farm, Nationwide, Liberty Mutual, Farmers, Progressive, etc. Crickets from them. :annoyed
State Farm, Nationwide, and Liberty Mutual are mutuals. The policyholders own the company, so they get paid dividends from the profits.

Farmers is an exchange. USAA also operates an exchange for the officers and senior enlisted. In an exchange, the policyholders indemnify each other for losses. If the losses turn out to be lower than expected, the profits will be returned to the policyholders.

These insurers might pay rebates anyway to prevent customers from switching to competitors, but you're probably better off waiting for the dividends.
rob wrote:
Wed Apr 08, 2020 11:57 am
Have to wonder what the real reduction in their costs were... FAR more than 15% I would bet.
Then you would get more money back at a mutual or an exchange, since they pass through the underwriting profits.

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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by stoptothink » Wed Apr 08, 2020 4:53 pm

dwickenh wrote:
Wed Apr 08, 2020 11:30 am
BGeste wrote:
Wed Apr 08, 2020 10:56 am
dukeblue219 wrote:
Wed Apr 08, 2020 8:11 am
A440 wrote:
Wed Apr 08, 2020 7:50 am
GEICO is doing the same for policy renewals between April and October.
GEICO is doing it for the full six months worth of premiums too
What Geico is doing is much better for consumers than what Allstate and American Family are proposing.

Where are the other companies? USAA, State Farm, Nationwide, Liberty Mutual, Farmers, Progressive, etc. Crickets from them. :annoyed
Give them time, competition is not immediate, but will likely show up.
I just paid my 6-month premium March 1st (Progressive). A 15% discount is all of $40 (over 6 months) for us, but I'd deposit the check.

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Re: [Auto insurance companies issuing refunds due to coronavirus]

Post by LadyGeek » Wed Apr 08, 2020 6:21 pm

I merged pshonore's thread into the Allstate discussion. Both threads were discussing multiple insurers, so let's use this thread for all auto insurance companies. I retitled the thread.

The combined thread is in the Personal Finance (Not Investing) forum (insurance).
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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by Random Poster » Wed Apr 08, 2020 7:07 pm

talzara wrote:
Wed Apr 08, 2020 4:38 pm
BGeste wrote:
Wed Apr 08, 2020 10:56 am
Where are the other companies? USAA, State Farm, Nationwide, Liberty Mutual, Farmers, Progressive, etc. Crickets from them. :annoyed
State Farm, Nationwide, and Liberty Mutual are mutuals. The policyholders own the company, so they get paid dividends from the profits.

Farmers is an exchange. USAA also operates an exchange for the officers and senior enlisted. In an exchange, the policyholders indemnify each other for losses. If the losses turn out to be lower than expected, the profits will be returned to the policyholders.

These insurers might pay rebates anyway to prevent customers from switching to competitors, but you're probably better off waiting for the dividends.
From the USAA link, it looks to me like they pay out dividends and, in this case, rebates:
As a member-owned association, USAA historically returns a portion of profits to members. In 2019, we returned $2.4 billion in dividends, distributions and bank rebates and rewards.
Personally, I’d like to see something from Amica other than the 10% or 15% rebate that typically shows up for me in November.

CMD1
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Re: [Auto insurance companies issuing refunds due to coronavirus]

Post by CMD1 » Wed Apr 08, 2020 7:37 pm

It's the least they can do as they try to fend off the insurance commissioners from forcing them to give their customers back a much larger share of premiums (see the Airline industry and ticket refunds with Congress forcing the issue). The number I've seen reported is that accidents are down ~87% so refunding 15% of 2 months seems like a big win for insurance companies. Now will the Insurance Commissioners call their bluff and force the issue?

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Nate79
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Re: [Auto insurance companies issuing refunds due to coronavirus]

Post by Nate79 » Wed Apr 08, 2020 7:44 pm

Liberty Mutual (who owns Safeco that was already mentioned above) also announced they will return money to their customers.

https://www.nydailynews.com/coronavirus ... story.html

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Re: [Auto insurance companies issuing refunds due to coronavirus]

Post by aristotelian » Thu Apr 09, 2020 5:36 am

I was just going to call Allstate to cancel insurance on one vehicle. Good move by All state. Saves them from millions of customer service calls and they would be losing the revenue anyway. They still come out ahead due to nobody on the road.

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Re: [Auto insurance companies issuing refunds due to coronavirus]

Post by doss » Thu Apr 09, 2020 6:44 am

Anyone heard anything from AAA auto insurance? I am not happy with them (non virus related) and hoping they refund premiums soon.

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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by Spirit Rider » Thu Apr 09, 2020 7:19 am

rob wrote:
Wed Apr 08, 2020 11:57 am
Have to wonder what the real reduction in their costs were... FAR more than 15% I would bet.
You have to consider that a significant factor an insurance company's net cost is investment gains/losses. They don't just put your premiums under a mattress.

Now, I would think they would invest far more conservatively for automobile policies that have constant claim liabilities. Home insurance claims tend to peak during natural disasters.

Finally, with life insurance it is usually longer term. I would expect life insurance premiums to go up. Probably more from investment losses in insurance company portfolios than death claims.

Many people don't know that a significant driver of Berkshire Hathaway's growth has been Warren Buffet's acquisition insurance companies the largest of which is GEICO.

He has always used the insurance premium float to invest. He is quoted as saying that BRK would be nowhere near where it is today without the insurance company cash to invest.

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Re: [Auto insurance companies issuing refunds due to coronavirus]

Post by Pablov » Thu Apr 09, 2020 1:47 pm

I was looking for progressive's # on their site and found the following:

>>>

Personal auto premium credit
Many of you are staying home to minimize exposure and spread of COVID-19. While you’re doing your part to fight the pandemic, we’re committed to being there in your time of need.

If you have an active personal auto policy at the end of April, you’ll receive a credit for 20% of your April premium. We’ll offer the same 20% credit to active personal auto customers at the end of May, and we may offer additional credits in the upcoming months.

There’s nothing you need to do. We’ll automatically calculate your credit at the end of each month, and then you’ll see it reflected in your account within a few weeks. If you have a balance on your policy, we’ll apply the credit directly to your remaining balance. And if you’re already paid in full, we’ll return the money to the payment account we have on file—so please make sure your payment details are up to date.

This credit is subject to approval by state regulators.

https://www.progressive.com/support/covid19/
>>>

That is good news. I hope the last line ("This credit is subject to approval by state regulators") does not result in discounts not being honored.

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USAA to Return $520 Million to Members

Post by mapleosb » Thu Apr 09, 2020 3:12 pm

https://communities.usaa.com/t5/Press-R ... mlink=cta1

[Press release from USAA, an insurer, announcing a 20% credit on two months of premiums- description added by Moderator Misenplace]

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Re: Allstate offers 15% [car insurance] rebate for reduced driving

Post by talzara » Thu Apr 09, 2020 3:27 pm

Random Poster wrote:
Wed Apr 08, 2020 7:07 pm
Personally, I’d like to see something from Amica other than the 10% or 15% rebate that typically shows up for me in November.
Amica is a mutual. Any excess profits will be paid out as dividends to participating policies. Since you are already receiving dividends every year, you should receive a larger dividend this year.

Amica also sells non-participating policies, which do not receive dividends.

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Re: USAA to Return $520 Million to Members

Post by Chip » Thu Apr 09, 2020 3:33 pm

$20 for me. Woo hoo!!!

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Re: USAA to Return $520 Million to Members

Post by arcticpineapplecorp. » Thu Apr 09, 2020 3:35 pm

yeah, got an email from Geico yesterday. they're returning 15% of premiums on auto and motorcycle on next bill (between 4/8/20 and 10/7/20).
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Re: USAA to Return $520 Million to Members

Post by CardioMD » Thu Apr 09, 2020 3:35 pm

I’m a penny pincher so every little bit helps.

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Re: USAA to Return $520 Million to Members

Post by Lalamimi » Thu Apr 09, 2020 3:37 pm

Allstate, as well. 15% of 2 month's premium. Might get $30. We will take it!

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