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Coronavirus: With Americans hardly driving, should insurers give bigger discounts?
May 23, 2020 1 min, 23 secs

While auto insurers are giving customers average premium refunds of about 15% these drivers are owned much more —twice as much — advocates argue.

While auto insurers are giving customers average premium refunds of about 15% these drivers are owned much more —twice as much — advocates argue. .

A 30% discount would, in fact, reflect a roughly 50% decline in miles driven and accident claims during the crisis while tempered by some higher insurer costs, such as a likely rise in unpaid policies, says Birny Birnbaum, an economist and executive director of Center for Economic Justice, which analyzed pandemic driving and claims in a May study.

When his auto insurer emailed him to say he’d receive a refund for April and May, he said he was expecting about $100 off his annual bill of about $1,800.

Shauna Dillenbeck of Boise, Idaho, says her insurer, State Farm, told her it had earmarked billions in refunds for customers — but she has yet to see a reduction in her monthly $160 insurance bill.

State Farm says Dillenbeck and other customers will likely see refunds on their June statements

The company is also reducing its auto rates by an average of 11%, although the rate reduction will go into effect when the customer renews their policy

The first step is to call your insurance company to ask for a refund on your current policy, Birnbaum says

If you don’t think your insurer is providing enough relief, you could shop around for a new policy, Birnbaum notes

Because insurance is regulated on the state level, you should take your complaints to your state insurance department, Birnbaum says

Only two states — California and New Jersey — have ordered auto insurers to provide premium refunds to their customers, Birnbaum says

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