April 13, 2020

Triple-I: U.S. Auto Insurers to Return $10.5 Billion to Customers

Triple-I: U.S. Auto Insurers to Return $10.5 Billion to Customers


U.S. auto insurers will return more than $10 billion to their
customers nationwide, according to an estimate released on April 11 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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