Insurance Department: Auto Insurers to Return Over $187M to Louisiana Drivers

April 16, 2020

The Louisiana Department of Insurance says collectively auto insurers will return more than $187 million in premium to drivers in the state in the form of refunds and rebates on auto insurance policies.

Insurance Commissioner Jim Donelon notes that auto insurers in Louisiana and across the country are providing premium reductions and rebates to policyholders during the ongoing crisis brought on by COVID-19. Because most drivers are following the stay at home order, there are less miles being traveled which has resulted in fewer accidents. As a result of this dynamic, many auto insurers are now sharing their savings with consumers.

As of April 15, the insurers below have announced or provided the LDI with the details of a rebate or rate reduction program. The list includes 13 of the top 20 auto insurers doing business in the state.

Companies Offering Premium Payback Due to COVID-19 Group/Company 2019 Written Premium 2019 Market Share COVID-19 Related Return Premium # Months Return Premium Projected Return Premiums STATE FARM GRP $ 1,442,012,580 29.5% 25% 2.37 $ 71,099,231 PROGRESSIVE GRP $ 803,097,944 16.4% 20% 2 $ 26,769,931 BERKSHIRE HATHAWAY (GEICO) $ 571,941,640 11.7% 15% 6 $ 42,895,623 ALLSTATE INS GRP $ 540,137,655 11.1% 15% 2 $ 13,503,441 USAA GRP $ 294,072,269 6.0% 20% 2 $ 9,802,409 FARM BUREAU GRP $ 262,659,515 5.4% 15% 2 $ 6,566,488 LIBERTY MUT GRP $ 197,963,554 4.1% 15% 2 $ 4,949,089 GOAUTO INS CO $ 163,079,583 3.3% 15% 2 $ 4,076,990 SHELTER INS GRP $ 69,820,682 1.4% 30% 2 $ 3,491,034 METROPOLITAN GRP $ 41,273,185 0.8% 15% 2 $ 1,031,830 KEMPER CORP GRP $ 33,705,462 0.7% 15% 2 $ 842,637 HARTFORD GRP $ 26,937,539 0.6% 15% 2 $ 673,438 HANOVER INS GRP $ 20,640,280 0.4% 15% 2 $ 516,007 AMERICAN FAMILY GRP $ 14,207,687 0.3% $50.00 ** $ 256,500 FARMERS INS GRP $ 7,170,609 0.1% 25% 2 $ 298,775 AMICA MUT GRP $ 4,901,655 0.1% 20% 2 $ 163,389 CHUBB LTD GRP $ 4,819,446 0.1% 35% 2 $ 281,134 TRAVELERS GRP $ 1,276,289 0.0% 15% 2 $ 31,907 TOTAL ALL COMPANIES $ 4,458,444,389 92.1% $ 187,249,854

** American Family is offering a flat $50 per vehicle

Source: LDI

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