LOS ANGELES (CBSLA) — Shortly after Allstate announced it was refunding $600 million in premium payments to its customers as people drive less during the coronavirus pandemic, other agencies have followed in their footsteps.
Karl Susman with the Susman Insurance Agency expected this outcome following Allstate’s announcement earlier this week.
“We see the rest of the carriers following suit to try and stay competitive,” Susman said.
“The response has been huge. Every company is saying something. If they have not made an announcement yet, they’re telling us, stand by something is coming.”
As of Thursday, Progressive was offering a 20 percent credit on April and May premiums.
Mercury Insurance, Safeco, Liberty Mutual, and Travelers Insurance are all giving a 15 percent credit on April and May premiums.
Geico announced it is offering a 15 percent credit on their auto and motorcycle policies for renewals between April 8th and October 7th.
Farmers and 21st Century are offering a 25 percent reduction for the April premium only and Nationwide private client is giving $50 back per policy.
State Farm also announced its driver will seeing a 25 percent premium reduction from March 20 to May 31.
“They are all saying there is no action required by clients, this will happen automatically,” said Susman.
In a statement, the State Department of Insurance said it will be reviewing all actions by insurance companies to make sure they are distributing the money “fairly” and not “discriminatory”.
The statement encourages all insurers to consider giving some of its profits back to the consumer, “and if the companies will not do it voluntarily, my department will exercise its authority under California law so that drivers are not overpaying for insurance during this emergency. Every dollar counts for drivers and businesses.”
Most insurers are also not canceling for nonpayment and are not charging late fees.
According to insurance experts, they expect premiums to drop beyond the next couple of months, as fewer claims are filed and profits skyrocket for insurers.