Yahoo Autos Progressive, Farmers, and 21st Century to offer 20-25% insurance discounts for April
Following the announcements that Allstate and Geico will dole out 15% discount credits to its auto insurance customers, Farmers insurance and 21st Century insurance said they would take 25% off customer premiums for the month of April. Progressive insurance also announced it will discount April and May premiums by 20%. The credits will be applied automatically without any required action from customers.
As a result of the strict stay-at-home orders that are in place to help stop the spread of the coronavirus, much of the public is spending significantly less time on the roads. With fewer cars driving, there are fewer accidents. If people aren't driving, they're essentially paying for a service they are not using, or are using drastically less often.
According to AAA, a U.S. Energy Information Administration report stated demand for gasoline is nearly at a 30-year low. The amount of weekly U.S. product supplied of finished motor gasoline dropped from 9,449 barrels per day in the first week of March to 6,659 barrels per day in the last week of March. Furthermore, Allstate data indicated driving has been down 35-50% in most states.
To make matters worse, the COVID-19 pandemic has caused tremendous financial turmoil for millions around the world. According to NPR, roughly 17 million people in the U.S. have filed for unemployment in the past three weeks, as a result of company closures, employee layoffs, and furloughs.
