Auto Insurance Companies Announce Reductions and Rebates

In response to the COVID-19 crisis and decreased driving as motorists follow “Stay at Home” orders, many insurance companies are issuing rebates and lowering their rates. Earlier this week, Insurance Commissioner Jim Donelon called on all of Louisiana’s auto insurers to take up the practice. Most drivers are seeing a 15% return on a policyholder’s March and April premiums, future discounts or lower rates going forward. You can read the press release below.

Several companies have made public announcements about the refunds or reductions in premiums. Here is a list of the companies and what they are doing as far as refunds go, according to their web sites, unless otherwise noted.

Allstate
https://www.allstate.com/covid.aspx?intcid=/home/home.aspx|hero|LearnMore|Covid19200406

‘Shelter in Place Payback’ – On average, we’ll refund 15 percent based on the monthly premiums due 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. Please check your payment information to make sure it is up to date.


GEICO
https://www.geico.com/about/coronavirus/

GEICO is providing a 15 percent 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.


Liberty Mutual
https://www.libertymutual.com/covid-19

Fewer drivers are on the road, which means fewer accidents. With this in mind, we are announcing our Personal Auto Customer Relief Refund, which will return an estimated $250 million to our personal auto insurance customers. Here’s how it works:

Personal auto insurance customers will receive a 15% refund on two months of their auto premiums, as of April 7, 2020, pending regulatory approval.

The refunds will begin in April and will be issued either by check or in the manner you made your most recent payment.

The payments will happen automatically, and you do not need to call us to receive the refund.


Progressive
https://www.progressive.com/support/covid19/

Personal auto premium credit
If you have an active personal auto policy at the end of April, you’ll receive a credit for 20% of your April premium. We’ll offer the same 20% credit to active personal auto customers at the end of May, and we may offer additional credits in the upcoming months.

There’s nothing you need to do. We’ll automatically calculate your credit at the end of each month, and then you’ll see it reflected in your account within a few weeks. If you have a balance on your policy, we’ll apply the credit directly to your remaining balance. And if you’re already paid in full, we’ll return the money to the payment account we have on file—so please make sure your payment details are up to date.

This credit is subject to approval by state regulators.


State Farm
https://newsroom.statefarm.com/covid-19/

In an effort to help customers during these challenging times, State Farm Mutual Automobile Insurance Company, the nation’s largest auto insurer, is announcing up to a $2 billion dividend that will go to its auto insurance customers. With schools and businesses closed, and many of us sheltering in our homes, people are driving less right now, so we’re returning value to customers as we anticipate fewer auto claims.

Customers do not need to take any action to receive this dividend, which will appear as a credit on their auto policy.


Travelers
https://www.travelers.com/about-travelers/covid-19-coronavirus-update

Will give customers a 15 percent credit on their April and May bills.


USAA
https://www.usaa.com/inet/wc/coronavirus-info-usaa-members

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. All told, we’re returning about $520 million. You will not need to call or take any other action.


GoAuto 
https://ww1.goautoinsurance.com/covid-19

To lighten the burden on our policyholders, we will be reducing premiums for Louisiana policyholders by approximately 15% during April and May. This will automatically go into effect for all active Louisiana GoAuto insurance policies as well as new policies or renewals that make a payment between April 1 through April 30 and May 1 through May 31, 2020.


Leave a Reply