Lack of driving during coronavirus crisis leads to auto policy refunds

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Faculty

 

Madison-based American Family Insurance and other auto insurance companies are refunding hundreds of millions of dollars to policy owners to compensate for the lack of driving during the coronavirus crisis.

Madison College Risk Management and Insurance instructor Martha Lester told In Business Magazine that “companies will give discounts on policy renewals if losses and claims are lower than expected, but this is the middle of a policy period and I’ve never seen that in my career.”

Lester was also interviewed by Channel 15 about the partial discounts, which are also being offered by Allstate, Geico and Liberty Mutual.