Over the past month, we have seen nearly all personal auto insurance companies provide a refund or credit to April and May premiums. We have been asked by many clients when they will we see the refund/credits and also if the refund/credits will extend beyond May.
When will you see the money?
The refund/credits from most insurance companies apply to April and May. The actual reduction happens the following months in May and June. Some companies are also applying a one-time credit to your entire auto policy, effective on your next renewal. Specifics for each insurance carrier can be found by clicking on the link below for our original communication about COVID-19 refund/credits.
Will the refunds/credits continue beyond April/May?
As it stands right now, McMichael Insurance is acting on your behalf and encouraging all of the insurance companies we work with to continue the refund/credits. The decision is not ours to make. Like you we are hoping that the insurance companies will continue the discount.
When determining rates, personal auto companies look at two factors in addition to the actual monetary payout of claims. The factors are frequency (how often) and severity (how much is paid). Both frequency and severity are down. Personal Auto insurance companies are doing very well with low auto losses. However, at this point, it’s too soon to know if this trend will continue as the economy opens back up in Ohio and across the nation. Even if the economy opens just a little, long-distance travel will likely be down. The team at McMichael will monitor the situation as it continues to unfold and encourage our insurance companies to continue the refund/credits. We will continue to do our best to see that your needs are met.
McMichael Insurance will continue to keep you up to date on COVID-19 issues.
Dennis McMichael, Vice President