The situation in the US is not hidden to anyone. The cases are rising rapidly, people are dying every day and the crisis in the medical system has got exposed to everyone. During this whole situation, the government is putting restrictions, people are controlled by their selves and not coming out of their homes for obvious reasons.
This has caused a significant shrink in automobile accidents and miles they run every day. Looking at this factor many insurance companies have cut their premiums. Insurance giant state farm has joined this list recently which will give relief to thousands of insurance policyholders in Ohio.
The reduction is expected to save the insurers’ 1.9 million customers in the Buckeye state of around $174.1 million. Moreover, the decrease will include the current policyholders at renewal as well as new and returning clients. In May State Farm had disclosed its premium cuts. The cuts will be about 11% which will save around $2.2 billion of its customers.
Also, this is worth pointing out that the State farm is the largest auto insurance company in the country. It has said that current internal data about driving and claims show a significant decrease in automobile running and accidents.
So to support their Ohio customers in this tough time and going with the trend they have done it so. Also, this will have a greater impact on the insurance market of Ohio. State Farm is the leading insurance company of Ohio which will motivate others to follow this. Moreover, some companies have already started to follow this way.
Some others are analyzing the whole scenario and planning different approaches to this. Among these companies is State Auto Financial which started slashing premiums at renewal by 5% in April.