State Farm, the nation’s largest car insurer, and Progressive have joined the parade of companies offering drivers refunds because the coronavirus is reducing travel.
The State Farm rebate will be on average 25% of premiums paid March 20 through May 31, the Bloomington-based company said. It said the exact percentage will vary by state and that the total returned to policyholders will be about $2 billion.
Progressive said it will rebate 20% of premiums due in April and May. It said customers who have paid policies in full will get refunds. Industry data show Progressive is the third largest insurer in the U.S.
Earlier this week, Geico, Allstate and American Family said they were returning a portion of premiums for car insurance. They are acting because sharp reductions in driving are reducing accident claims.
