Givebacks Saved Auto Insurance Policyholders Amidst Pandemic

​During the COVID-19 pandemic, many insurance companies developed relief services to assist their car insurance customers. Most of these insurers offer premium refunds, terminate policy pauses, extend payment deadlines, and more. Learn more about how policyholders have helped.

How Auto Insurance Companies Helped
American highways see significantly fewer congestion and incidents, with millions under stay-at-home orders and operating remotely. It means that there is less chance of insurance claims, and car insurers are taking notice. Just over 80 percent of American auto insurance firms have announced that they will reimburse or credit drivers more than $6.5 billion in the next two months.

In addition to the refund plans, many insurers have financial hardship programs that may include a grace period for those unable to pay their bills to pay their insurance premiums late without incurring late fees or losing coverage. But to find out if this is available and explicitly request this form of relief, one will need to contact the policy insurer.

Insurance Companies Met with Higher Satisfaction Rate
During the coronavirus pandemic, getting less auto insurance claims seems to have provided insurers time to refine their consumer experience and offer better quality claims service. Compared to 868 points in 2019, overall satisfaction with the auto insurance compensation process rose to a record-high 872 on a 1,000-point scale.

Auto insurance companies boosted the processing speed for claims. They saw an improvement in the proportion of policyholders who said they would undoubtedly renew with their carriers compared to before the pandemic.

Despite relief efforts, a factor behind loyalty challenges is the essence of the insurance product itself. Consumers have a poor memory of positive reinforcement and are not very forgiving. They recall that they were paying a risk premium for an asset that was not used at the pandemic's current height, but they are less likely to remember the industry's attempts to deliver a cost reduction.

Conclusion
Since more people are driving less during the pandemic, many vehicle insurers responded with around $10 billion in premium refunds. Consumers still choose to look for cheaper options, even with this since they will target the company with low premium rates and adequate coverage.

At Family Auto Insurance Agency, we do our best to make sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (313) 285-9042 or Click Here to request a free quote.