Car Insurance Refund During Coronavirus
Posted in Car accidents on November 9, 2020
The COVID-19 pandemic has upended the way of life for most people throughout the country. Even those not directly affected by the virus have likely been inadvertently affected by the economic consequences rippling through the US.
As a result of COVID-19, much of the US was under some sort of state home order for various periods of time. Some places throughout the country shut down completely. These changes resulted in a significant decrease in the number of vehicles on the road each day.
Given this decrease, most car insurance companies throughout the US announced that they would issue auto insurance credits, refunds, or rate reductions for their customers.
Which companies announced these changes?
Here, we want to discuss which major insurance carriers announced changes to their policy premiums as a result of COVID-19 reductions. This list may not be complete or up-to-date by the time you read it, so please check with your insurance carrier to inquire about any changes to your auto insurance premium amounts.
- GEICO announced a 15% premium credit to policyholders on their next six- or twelve-month policy terms.
- State Farm announced that they would give policyholders a 25% credit on premiums paid for the period from March 20 through May 31, 2020.
- Progressive and USAA announced a 20% premium reduction for two months of premiums for their policyholders.
- Liberty Mutual announced a 15% premium reduction for two months of premiums for their policyholders.
- Nationwide announced a one-time premium refund of $50 per policy for every personal auto policy as of March 31, 2020.
Insurance carriers rarely take steps to refund or discount premiums, so this is certainly big news. However, the risk of an insured driver being involved in a car accident has been significantly lowered due to fewer miles being driven and fewer vehicles being on the roadway.
Insurance carriers charge consumers premiums based on a risk assessment, but this risk assessment has changed dramatically.
It is unlikely that the insurance carriers will continue refunds or discounts as driving begins to return to normal over the rest of the year and into 2021. If you are unsure of whether or not you have received or should be receiving, an insurance premium discount, contact your insurance carrier or open your policy online to check for discount information.
What are the Tennessee car insurance minimum requirements?
As a general reminder, Tennessee state law dictates how much insurance each driver must have carry in order to remain legal on the roadway. In TN, drivers must carry the following insurance limits:
- Bodily Injury liability: $25,000 per person and $50,000 per accident
- Property Damage liability: $15,000 per accident
We want to point out that uninsured and underinsured motorist coverage is not required in Tennessee. However, this type of coverage is highly recommended and is incredibly beneficial in the event a driver is struck by someone without insurance coverage or by a driver with insufficient policy limits.
When we turn to the Tennessee Department of Safety & Homeland Security, we can see that vehicle accidents are a reality for drivers and passengers throughout Tennessee. During the latest reporting year, there were more than 200,000 total vehicle crashes reported.
Out of these incidents, more than 48,000 were injury collisions and 1,069 were fatal collisions. The best way to protect yourself, your passengers, and others on the roadway is to have insurance on your vehicle.
While nobody wants to be involved in a crash, insurance will ensure that you and your loved ones are cared for.