Pleas and orders by health experts and governors to stay home through the coronavirus pandemic has resulted in fewer cars on the highway s. Besides truck drivers delivering goods and essential employees traveling to work, major roadways are rather empty these days.
The pandemic shut down many businesses, which resulted in people losing their jobs or placed on furlough. It also cleared traffic from roads around the country. As a result, some of the largest U.S. auto insurance companies are providing a bit of relief to their policyholders with premium reductions for the months of April and May.
Some auto insurers are slashing premiums by 15%, while others are giving their policyholders a bit more relief with 20% and 25% reductions. With many returning money back to customers, some auto insurers say that it could be extended further depending on the state of the pandemic.
ALLSTATE
The company through its “Shelter-in-Place Payback” program will give its personal auto insurance customers 15% back based on their monthly premium for April and May. Allstate will automatically deposit money back to the bank or credit card account used for a customer’s most recent payment, or apply credits to accounts. The company says to check your payment information to make sure it is up to date. Customers can get payment faster and view April payment details in the Allstate Mobile App. In addition to the Shelter-in-Place Payback, Allstate is offering free identity protection, payment relief and extended coverage.
FARMERS INSURANCE
Farmers and 21st Century branded auto customers will receive a 25% reduction in their April premium to reflect the changed driving environment resulting from various stay-at-home guidelines issued across the country. The national insurer has also implemented flexible payment plans and a temporary pause on cancellations to help relieve some of the financial stress being felt by customers. “As we continue receiving updated information in the coming weeks, we’ll assess additional ways to take care of our customers,” said Jeff Dailey, chief executive officer of Farmers Insurance.
GEICO
GEICO is providing a 15% credit to auto and motorcycle policyholders as policies come up for renewal between April 8 and Oct. 7, 2020. The credit will also apply to any new policies purchased during this period. The average auto policy has a semi-annual premium of about $1,000 and generally covers more than one vehicle. Geico says to expect credits to average about $150 per auto policy and $30 per motorcycle policy. Current policyholders can expect to see the credit when the policy renews. Geico says customers do not need to take any action to receive this credit.
LIBERTY MUTUAL
Liberty Mutual Insurance announced its “Personal Auto Customer Relief Refund,” which gives U.S. personal auto insurance customers a 15% refund on two months of their annual premium. This returns approximately $250 million to Liberty Mutual and Safeco personal auto insurance customers and builds on other customer support, including flexible payment options and delivery coverage expansion for auto policies.
NATIONWIDE
The company is offering a one-time premium refund of $50 per policy for personal auto policies active as of March 31, 2020. The refund will arrive in the next 30 days, subject to individual state regulatory approval. It will be returned to customers in the last form of payment they have made, whether electronic or paper. The refund is equivalent to an average savings of 15 % for two months and is on top of existing discounts customers already earn.
PROGRESSIVE
Progressive personal auto customers who have a policy in force as of April 30 will be credited 20% of their April premiums in May and personal auto customers with a policy in force as of May 31 will be credited 20% of their May premiums in June. Customers will not need to take any actions to receive the benefits. The credits will be applied automatically to the customers’ policy and those customers who have paid in full will receive a refund of the credited amounts.
TRAVELERS
The Travelers Companies Inc. announced it is giving U.S. personal auto insurance customers a 15% credit on their April and May premiums through its new “Stay-at-Home Auto Premium Credit” program. The company will automatically credit customers’ accounts, providing them with prompt and much needed relief during this time. Travelers will continue to assess the program as more information comes to light about the impact of the COVID-19 crisis on the driving environment and auto claims.
THE HARTFORD
Recognizing the difficult time many customers are facing during the pandemic, The Hartford announced its COVID-19 “Personal Auto Payback Plan,” which will provide customers with a 15 % refund on their April and May personal auto insurance premiums. Over the next two months, the company will distribute approximately $50 million to its customers. “We are experiencing a truly unprecedented time that is impacting our lives in many ways, including how we live, work, interact with one another and drive,” said The Hartford’s President Doug Elliot.
STATE FARM
On average, State Farm Mutual auto customers can expect to receive a credit of about 25 percent of premium for the time period March 20 through May 31; exact percentages will vary by state. Every State Farm Mutual auto insurance customer will receive credits applied against bills beginning as early as June. The dividend is part of the “Good Neighbor Relief Program” that also includes customer payment options and neighborhood philanthropic relief.
USAA
USAA will be returning $520 million to its members. This payment is a result of data showing members are driving less due to stay-at-home and shelter-in-place guidance across the country. Every member with an auto insurance policy in effect as of March 31, 2020, will receive a 20% credit on two months of premiums in the coming weeks.
