With fewer cars on the road due to shelter-in-place orders enacted in response to the COVID-19 pandemic, auto insurance claims have plummeted. In 2020, U.S. auto insurers collectively returned roughly $14 billion in premium relief to customers, according to the Insurance Information Institute (source). Those one‑time refunds have ended; today, the largest auto insurance companies primarily deliver savings through ongoing discounts—especially usage‑based/telematics programs—and, for some mutual carriers, non‑guaranteed dividends. Current insurer‑stated telematics maximums include: Allstate Drivewise up to 40% (source), Nationwide SmartRide up to 40% (source), State Farm Drive Safe & Save up to 30% (source), Liberty Mutual RightTrack up to 30% (source), and Travelers IntelliDrive up to 30% (source). Progressive’s Snapshot can lower or raise rates depending on driving (source).
Driving activity and claims have also shifted since 2020. Vehicle miles traveled recovered near pre‑pandemic levels by 2023–2024 (FHWA), and telework remains elevated (15.2% primarily worked from home in 2023 vs. 5.7% in 2019; U.S. Census Bureau). Claim frequency rebounded from 2020 lows but generally sits slightly below 2019 on aggregate, while crash severity and repair costs remain materially higher (LexisNexis 2024; CCC Crash Course). NHTSA estimates traffic fatalities declined 3.6% in 2023 and the fatality rate fell to 1.26 per 100 million VMT—still above 2019’s rate—reinforcing elevated severity (NHTSA). Against this backdrop, premiums are roughly 45%–55% higher than in late 2019 per BLS CPI (BLS), and many consumers pursue telematics to find savings (J.D. Power 2024).
Average savings reflect today’s program-based discounts (e.g., telematics, multi‑policy) and context from current national benchmarks. For reference, Bankrate’s 2024 national average for full‑coverage is $2,543 (source), while other reputable studies place the average near $1,800–$2,000 (source). See the table below for each insurer’s COVID‑19 relief references and their current savings channels.
Credits and rebates will be automatic
In 2020, many credits/refunds were automatically applied and delivered without customer action. Today, ongoing savings typically require eligibility or enrollment, and earned discounts are applied in your billing cycle or at renewal. Programs like Liberty Mutual RightTrack apply the discount after an evaluation period (insurer‑stated potential up to 30%; source). Similar timing applies at other carriers: Allstate Drivewise (up to 40%; source), Nationwide SmartRide (up to 40%; source), Travelers IntelliDrive (up to 30%; source), and State Farm Drive Safe & Save (up to 30%; source). Progressive Snapshot may lower or raise your rate based on driving (source).
Expect discounts to be credited through the same billing channel you use and to reflect measured driving. Because telematics participation is at or near record highs among price‑sensitive shoppers (J.D. Power 2024), most carriers support quick, app‑based enrollment and show your driving score and potential savings in real time.
Keystone Insurance Services and other independent agents commonly advise that if you paid in full, earned discounts are typically applied to future bills or issued as an account credit; specifics vary by insurer and state filing, so confirm timing with your carrier or agent.
These payments must be approved by your state’s regulator
Insurance is a heavily regulated industry where state agencies hold a lot of power, including control over what insurance discounts and rebates can be applied.
In some states, this means regulators are requiring insurers to give breaks to customers in response to COVID-19, while other states are scrambling to find ways to work around existing laws to allow insurers to provide this type of relief.
Since then, many jurisdictions modernized rules that shape today’s discounts. The NAIC updated its Unfair Trade Practices Act in 2020 to allow insurers to offer certain value‑added, loss‑mitigation services without violating anti‑rebating prohibitions (NAIC Model #880). Colorado enacted SB21‑169, requiring governance and testing to prevent unfair discrimination from algorithms and external data used in pricing and discounts (Colorado SB21‑169). The NAIC adopted an AI Model Bulletin in December 2023, setting expectations for AI governance and monitoring (NAIC AI Bulletin), and New York proposed detailed AI/ECDIS rules in 2024 with documentation and disclosure requirements (Reuters). California’s Sustainable Insurance Strategy advances pathways for verified mileage and usage‑based insurance within its prior‑approval regime (California DOI).
Check for updates from your state’s department of insurance to see how they are handling these payments and programs. Telematics typically requires opt‑in consent and clear privacy notices; many states expect explainable driver‑scoring and access to your score or dispute channels (NAIC AI guidance).
When you get your payment will vary by your insurer
Auto Insurance Rebates
Some insurers, like American Family, have decided to give a set refund to every customer holding a personal auto policy. This payment is expected to be sent as soon as it is approved by your insurance regulator.
Today, routine COVID‑era refunds are no longer broadly offered. “Rebate‑like” value now mainly comes from dividend policies at certain mutual carriers. For example, Amica’s dividend auto policies state that in some years policyholders may receive up to about 20% of premium back; dividends vary by company performance and state and are not guaranteed (source).
Auto Insurance Credits
The majority of insurers are issuing some kind of credit that will be applied toward your future premiums, but insurers are offering a range of different percentages applicable over a variety of terms.
Usage‑based/telematics programs are the largest current savings lever and have reached record‑high participation among price‑sensitive shoppers (J.D. Power 2024). Insurer‑stated maximums include up to 40% with Allstate Drivewise (source) and Nationwide SmartRide (source), and up to 30% with State Farm Drive Safe & Save (source), Liberty Mutual RightTrack (source), and Travelers IntelliDrive (source). Progressive Snapshot can also increase your rate for riskier driving (source). Non‑telematics examples include GEICO’s multi‑vehicle (up to 25%), good student (up to 15% on certain coverages), and anti‑theft (up to 25% on comprehensive) discounts—amounts and eligibility vary by state and coverage (source).
How the largest auto insurers are responding to COVID-19
| Company | Average Annual Premium | Average Credit/ Rebate | Average Savings |
| Allstate | $2,000–$2,600 national full‑coverage context (2024 studies: Bankrate; The Zebra) | 2020 credits (archived); current telematics: Drivewise up to 40% (source) | Behavior‑based savings up to ~40% (state/program dependent) |
American Family | $2,000–$2,600 national full‑coverage context (methodologies vary) | $50 one-time rebate (2020, archived); ongoing: standard discounts and telematics where available | Varies by state and program |
State Farm | $2,000–$2,600 national context | Drive Safe & Save telematics up to 30% (source) | Up to ~30% (driving and state dependent) |
Nationwide | $2,000–$2,600 national context | SmartRide telematics up to 40% (source) | Up to ~40% (after monitoring) |
Liberty Mutual | $2,000–$2,600 national context | RightTrack telematics up to 30% (source) | Up to ~30% (applies at renewal) |
Travelers | $2,000–$2,600 national context | IntelliDrive telematics up to 30% (source) | Up to ~30% (riskier driving may reduce savings) |
Progressive | $2,000–$2,600 national context | Snapshot telematics; savings or increases possible (source) | Variable (behavior‑based) |
GEICO | $2,000–$2,600 national context | Non‑telematics examples: multi‑vehicle up to 25%, good student up to 15%, anti‑theft up to 25% (coverage/state vary; source) | Up to listed amounts on eligible coverages |
Amica (Mutual) | $2,000–$2,600 national context | Dividend auto policies may return up to about 20% in some years (not guaranteed; source) | Dividend amounts vary by year/state; not guaranteed |
Now is a good time to look at how insurers are handling this crisis
Here at Reviews.com, when we review insurance companies, we take a close look at a lot of different measures of past performance to help us predict how providers will act in the future.
This crisis gives you the opportunity to look around at how insurers are supporting customers through these hard times and decide whether that response is in line with what you’re looking for in your insurance provider.
How we found the average auto insurance prices
Together with Quadrant Information Systems, we analyzed publicly filed rate data to find auto insurance rates by company, state, age, and credit score. These rates are based on data up to date as of December 2019 and are based on sample profiles created for comparative purposes only.
