Looking for a silver lining through all of the coronavirus craziness? Would a rate reduction to your insurance help financial struggles? Well, good news! Insurance carriers in our area are doing just that! I have received several emails from the carriers we represent about credits (reduced premium) they are giving to the people insured with them – from automobile drivers, small businesses and contractors.
For example, here is a snippet of an email I received from Progressive:
Subject to approval by state regulators, Progressive personal auto customers who have a policy in force as of April 30 will be credited 20% of their April premiums in May and personal auto customers with a policy in force as of May 31 will be credited 20% of their May premiums in June. We estimate that the sum of these two credits will total approximately $1 billion. We may offer additional credits in the upcoming months.
Why are companies like Progressive doing this? I tend to believe it is twofold. The first is that the activity of these insureds is going to be less than what would have been contemplated at the time of policy purchase. Since there are less drivers on the road and less business being done, there is less exposure for the insurance company. Hence why they can afford to give you some of your premium back. The second is to assist the people that keep their business running. Simply put, they are exercising corporate social responsibility and doing what our industry has always strived to do – help provide peace of mind to those they do business with.
Let’s raise a glass to these insurance companies for giving us a bit of good news amongst uncertain times.
Written by Robbie Korth
If you have any questions, please feel free to contact Robbie Korth at firstname.lastname@example.org.