14 Apr Car Insurance Rebates due to COVID-19
Many of you probably already heard some auto insurers are offering car insurance rebates due to COVID-19 since stay-at-home orders have greatly reduced vehicle use and, by extension, crashes on the road. The St. Louis Post Dispatch compiled a good list of the companies participating in car insurance rebates due to COVID-19. At first blush, it appears altruistic of them to give up income at a time like this but is it truly? I am happy they agreed to give something back because, after all, they are under no obligation to do so. However, most insurers are reporting an expected drop in accident claims of anywhere from 60-85%, which translates to billions in savings for the largest auto insurers according to CNN. They are giving a very small percentage of their profits back to consumers. Insurers are shrewd and calculating so, while they are giving some money back to their customers, they are keeping the majority of the savings for themselves while simultaneously trying to gain positive PR. Again, they are under no obligation to give anything back but I wish they were a little more transparent and less self-congratulating about their good deeds.
Thanks for reading this blog about car insurance rebates due to COVID-19!
Tarun B. Rana, Esq.
Rana Law Group
655 Craig Road, Suite 252
St. Louis, MO 63141