Because of this sudden and dramatic change in driving habits, many insurance companies are taking steps to return a portion of the premiums clients have paid for their auto insurance.
“These are challenging financial times for millions of Americans, and the country’s auto insurers are making it easier for their customers to get through this extraordinary time in U.S. history,” said Sean Kevelighan, CEO of the Insurance Information Institute.
On April 13th the Michigan Dept. of Insurance and Financial Services released a bulletin detailing the steps insurance companies must follow to submit any plans for premium returns in Michigan. While some insurance companies have already proposed potential return amounts, these reductions still require state regulatory approval. It is unclear how many insurance companies will ultimately submit plans to the State of Michigan to issue premium returns or how quickly these plans will become effective. In the event that your insurance company is approved for the issuance of premium returns, your insurance company will contact you directly on how this return will be delivered.
Insurance companies have also stepped up in other ways by donating to relief efforts, suspending policy cancellations, waiving fees and adding free coverages for identity theft, delivery services and other needs.
Article written by: Andrew Johnson
Insurance Agent & Owner
Frankfort Insurance Agency, Inc., Frankfort, Michigan