The latest estimate released by Insurance Information Institute (Triple-I) suggests that US auto insurers will return over $10bn to their customers nationwide.
This estimate is based on its analysis of 14 US auto insurers who announced this week premium refunds, discounts, dividends, and credits totaling $8.1bn.
Go deeper with GlobalData
These insurers pointed out reduced policyholder mileage and the receipt of fewer claims due to the Covid-19 crisis as the reasons behind their decisions.
Triple-I also evaluated the industry’s cumulative market share and estimated an additional $2.4bn in refunds, discounts, dividends and credits were forthcoming.
Triple-I CEO Sean Kevelighan said: “Insurers are again fulfilling their role as economic first responders by providing financial relief to customers when they need it most.
“If the rest of the nation’s private-passenger auto insurers are as generous as the companies the Triple-I knows about, we project insurers will be giving customer refunds, discounts, dividends, and credits totaling $10.5bn.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“These are challenging financial times for millions of Americans, and the country’s auto insurers are making it easier for their customers to get through this extraordinary time in US history.”
In addition, the Triple-I also updated its fact sheet, Insurers Offer Forward-Looking Solutions For Covid-19 Recovery, to reflect the US auto insurers’ latest steps.
According to the organisation, a typical US auto insurance customer spent $1,113 in 2019 to cover a single private-passenger vehicle.
