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|July 9, 2020|
Pandemicís silver lining: Car insurance savings
SACRAMENTO Ė (INT) - California automobile insurance companies have agreed to provide $1.21 billion in savings to drivers because of the COVID-19 pandemic.
That figure includes $1.03 billion in premium relief for more than 18 million policyholders for the months of March, April, and May and an additional $180 million in future rate increases that insurance companies reduced.
The premium relief per policy for the months of March through May as reported by the 25 largest insurance companies ranged from $19 to $155, depending on the cost of the policy and the company's formula for providing relief. The overall average relief per policy for the top 25 carriers is $57 or 3.63 percent of a policyholder's annual premium.
Approximately half the companies returned premium to drivers in the form of a refund or dividend, while the rest offered a credit against future premiums.
Story Date: June 25, 2020