NEW YORK, April 11, 2020 /PRNewswire/ -- U.S. auto insurers will return more than $10 billion to their customers nationwide, according to an estimate released today by the Insurance Information Institute (Triple-I).
"Insurers are again fulfilling their role as economic first responders by providing financial relief to customers when they need it most," said Sean Kevelighan, CEO, Triple-I. "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 $10.5 billion."
The Triple-I's $10.5 billion estimate is based on its analysis of 14 U.S. auto insurers who announced this week premium refunds, discounts, dividends, and credits totaling $8.1 billion. These insurers cited reduced policyholder mileage and the receipt of fewer claims amid the COVID-19 crisis as the reasons they were able to make these decisions.
Given there are hundreds of companies that sell private-passenger auto insurance in the U.S., the Triple-I looked at the industry's cumulative market share and estimated an additional $2.4 billion in refunds, discounts, dividends and credits were forthcoming. The Triple-I has updated its Fact Sheet, Insurers Offer Forward-Looking Solutions For COVID-19 Recovery, to reflect the latest steps taken by the nation's auto insurers.
"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 U.S. history," Kevelighan stated.
The Triple-I estimates the typical U.S. auto insurance customer spent $1,113 in 2019 to cover a single private-passenger vehicle.
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THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.
SOURCE Insurance Information Institute