State Farm says it’s cutting auto insurance rates in every state, offering another $2.2 billion back to customers who are driving—and crashing—less because of the pandemic.
The rate cuts, announced Monday, are in addition to the up to $2 billion in premium refunds that State Farm announced in April. Together, State Farm auto customers should see about $4.2 billion in savings.
“Current State Farm driving data and claims experience show a considerable decline in miles driven and fewer accidents,” State Farm Senior Vice President Kristyn Cook-Turner said in a statement. “As a result, we’re looking for ways to continue supporting our customers while we monitor and adjust to trends.”
State Farm says the national average for the rate reductions is 11%. Rate changes in some states are subject to regulatory approval.
Many U.S. insurers are offering money back to their auto customers, who are driving less due to the pandemic. That saves auto insurers money because they’re not paying out as many claims.
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