BOSTON — The Attorney General in Massachusetts is urging car insurance companies to adjust their rates as more work from home during the health crisis. The question now is if fewer people are on the road, are the roads safer?
"We looked at it and said people are driving a lot less and that leads to fewer accidents," said Glenn Shapiro, Allstate, President, Personal Property-Liability.
AG Maura Healey’s Office told Boston 25 News, “It’s incredibly important that car insurance companies are responsive to consumers throughout this crisis and should consider reducing rates to reflect decreased risk.”
Allstate says they were the first in the country to cut their customer's rates saying "most customers will receive 15% of their monthly premium in April and May."
"When those accidents are not happening as often because fewer accidents, fewer people are on the road to drive and run into you or you to run into someone else that reduces the cost we have and we are passing that cost savings along," said Shapiro.
Progressive Insurance says to help their customers, “It is providing approximately $1 billion to them as a result of fewer claims that come with less frequent driving.” And if approved by state regulators, customers with current policies “will be credited 20% of their April and May premiums.”
State police say since the Governor's emergency stay at home advisory their troopers have seen a drastically lower number of crashes.
State police also say this past month has had more than half the number of crashes than the year before, but they are also seeing people driving faster, which they say they are aggressively taking action against.
Right now most of the insurers we talked to are only looking at April and May rates right now, but that could change depending on what happens in the U.S. with this crisis.
- American Family Insurance: $50
- Allstate: 15% for April and May
- Erie Insurance: Varies by individual and state
- Farmers: 25% for April
- Farm Bureau Insurance of Tennessee: Special payments will equal 24.75% of two months premium
- Geico: 15% on the entire six-month policy
- Liberty Mutual: 15% on two months’ of premiums
- Nationwide: $50
- Progressive: 20% for April and May
- Travelers: 15% for April and May
- USAA: 20% on two months’ of premium