Many of us are under official stay-at-home orders or strongly worded recommendations, which means we’re not driving much, if at all.
The lack of travel seems to be making for a lack of crashes and payouts -- and a good handful of the national auto insurers are going to do something about it: meaning, give us some money back.
You might see a refund of about 15% for April and May. Scroll down for a breakdown by company.
The company is announcing a Shelter-in-Place Payback of more than $600 million in April and May for its auto insurance customers.
On average, Allstate said, personal auto insurance customers will receive 15% money back based on their monthly premium in April and May. Allstate will automatically deposit money back to the bank or credit card account used for payment, or apply credits to accounts, depending on customer preferences.
If you’re with Allstate, you’re encouraged to check your payment information to make sure it’s up to date.
Customers can get payment faster through the Allstate Mobile App. Learn more here.
If you look on the Farmers homepage, it says right at the top, “We’re reducing your car insurance premiums by 25% for April. There’s no need to call, you’re automatically enrolled.”
If you click through to learn more, you’ll see a message from the Farmers Insurance CEO, along with information on pausing cancellations, renewals and more.
GEICO set up a page about what the company is doing in the wake of the COVID-19 crisis.
“(We are) providing a 15% credit to our auto and motorcycle policyholders as your policy comes up for renewal between April 8 and October 7, 2020. The credit will also apply to any new policies purchased during this period. The credit is part of our ongoing efforts to assist policyholders during this unprecedented time. ... Current policyholders can expect to see the credit when your policy renews. You do not need to take any action to receive this credit.”
- Personal auto insurance customers will receive a 15% refund on two months of their auto premium, based on your premium amount as of April 7, 2020.
- Liberty plans to issue the refund in the manner you made your most recent payment, or by check.
- The company said it would begin issuing refunds in the coming weeks, after it has approval from state insurance regulators.
- Your refund will happen automatically, and you do not need to call or contact anyone.
Subject to approval by state regulators, 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, according to this company statement.
“We estimate that the sum of these two credits will total approximately $1 billion,” Progressive said online. “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.”
A State Farm spokeswoman said over email mid-day Thursday that the company expects to release a decision by the end of the week.
“As a mutual insurance company, we make decisions based upon what is in the best, long-term interests of our policyholders, taken as a whole. The impact of COVID-19 and the nation’s response to this crisis is without modern precedent. An obvious impact government restrictions are having is on our collective driving habits. With schools and businesses closed, and orders to shelter in our homes proliferating, we know our auto insurance policyholders are driving much less than anticipated. We are closely monitoring our automobile insurance loss trends and are considering how best to take this into account and return value to our auto insurance policyholders.”
If you're currently facing a financial burden, call your State Farm agent to see how we can help. pic.twitter.com/uO8VR4ZaXh— State Farm (@StateFarm) March 27, 2020
Travelers is giving U.S. personal auto insurance customers a 15% credit on their April and May premiums, along with providing billing relief for all U.S. customers, including suspending cancellation and nonrenewal of coverage due to nonpayment through May 15, 2020 (no interest, late fees or penalties will be charged).
Learn more about the other actions the company is taking.
USAA is returning $520 million to members with auto policies.
So, what does that mean for customers?
This website will explain: “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. ... You will not need to call or take any other action.” More information.
If we find out any news about more deals, we’ll be sure to update the story.