Geico joins Allstate in offering auto insurance rebates

Jim Donelon, Louisiana commissioner of insurance, on Tuesday joined the call for car insurance companies to offer relief to policyholders during the COVID-19 crisis. Stay-at-home orders and social distancing guidance are drastically reducing the number of cars and accidents on Louisiana’s roads, leading to surging car insurance company profits as workers and businesses struggle.
Donelon’s call for relief for drivers came three weeks after he was first contacted on the issue by the Consumer Federation of America.
Shortly after Donelon’s comments, Geico announced they it would join Allstate in offering relief for auto policyholders in the form of a 15% credit.
Insurers offering relief should be applauded, but we won’t know if these actions are adequate until final accident data is released.
According to social distancing data gathered by Unacast, travel is down 40-55% in Louisiana due to COVID-19.
GEICO and Allstate combined hold just over 15% of Louisiana’s car insurance policies. Insurers who represent the rest of Louisiana’s policyholders — like State Farm, which holds 30% of Louisiana’s policies — have yet to announce relief for drivers. State Farm and Progressive told The Advocate that they’re “monitoring” and “exploring” the situation.
“Real Reform Louisiana applauds Commissioner Donelon for asking insurers to provide rebates to policyholders as COVID-19 keeps Louisianans off the road. While the initial announcements from GEICO and Allstate are encouraging, 85% of Louisianans are still waiting to hear if their insurers will do the right thing. Louisiana will need committed and continued advocacy from Commissioner Donelon if our drivers are going to get the relief they need and deserve,” said Real Reform Louisiana Executive Director Eric Holl.