Car insurance companies give out credits, but some haven’t seen any
Car insurance bills are smaller, as less people hit the roads. Insurance companies are helping many drivers make ends meet by giving credits, as many people choose to stay home. But some haven’t seen this money back yet.
We looked at why some people are not receiving payments from car insurance companies Monday.
You may see a few more cars on the road than you did a few weeks ago. People are headed to beaches, parks and reopened restaurants.
But, even as Florida leans into Phase 1 of reopening, traffic is still down.
They’re seeing less driving overall,” said Mark Friedlander, with Insurance Information Institute. “Which means less accident frequency, less claim frequency, so not as many claims are being paid out.”
One reason Friedlander says is because you might pay less on your next car insurance bill.
“What we’re seeing is rebates, refunds, credits totaling more than $10 billion, Friedlander said.
Letters from companies such as Geico and State Farm explain customers could see anywhere from 10% to 25% of their premium credited back to them.
“The customer doesn’t need to do anything,” Friedlander said. “It will come in the form of either a credit on their next bill or literally a hard check in the mail.”
If you haven’t, Friedlander says some smaller, regional insurance companies are working to do the same but rolling it out slowly.
At the same time, insurance companies are seeing a new trend.
“Initial data shows some decline,” Friedlander said. “But another issue we’re seeing on the other side: There’s a lot of speeding going on.”
With less traffic along roadways, there is the temptation to drive over the speed limit.
“As a result, some accident frequency is actually up in certain parts of the state,” Friedlander said.
But the traffic patterns change as Florida’s laws evolve, as will your carrier’s financial relief on premiums.
Friedlander’s advice is to reach out if you’re having trouble making payments.
Now, if you aren’t noticing any credit on your account, some insurers are spreading out the dollars over several months. This is on top of many companies banning cancellations of coverage if you can’t pay.