While drivers are stuck at home amid the Coronavirus pandemic, the largest auto insurance companies are offering customers premium refunds. According to the Insurance Information Institute, U.S. auto insurers will return more than $10B to their customers, mainly in the form of a credit.
Most companies are offering a 15-20% reduction in premiums due over the next few months. If you pay in advance, you may be eligible for a refund check. Additional relief may be offered in the form of flexible payment plans, as well as a temporary pause on cancellations. Among those discounting premiums are: Allstate, GEICO, Liberty Mutual, Cincinnati Insurance, Nationwide, Travelers, Progressive, & USAA.
Here are some exceptions to the standard 15-20% credit offering:
Chubb: The largest property and casualty insurer in the world announced they will be giving personal auto insurance clients in the U.S. a credit reflecting a 35% premium reduction for the months of April and May. The average credit is expected to be $110 per vehicle. Credits will be applied automatically.
Erie Insurance: Offering reduced rates for personal and commercial auto insurance policies, as well as a 60 day grace period and a pause on premiums, if certain requirements are met. The estimated financial relief is to be about $200 million.
Farmers Insurance: During the month of April, auto insurance customers of Farmers and 21st Century will receive a 25% reduction in their premium. No action is needed. They are also pausing cancellation of these policies for non-payment until May.
State Farm: The insurer announced they will give customers an approximate 25% credit off of premiums paid between March 20 and May 31. Credits will be applied automatically.
What if your insurance company is not offering relief?
Fewer cars on the road typically means fewer accidents. If you don’t see your carrier above, check out their web page for relief offers. This may be a good time to evaluate how willing your auto insurer is to “share the wealth!”
As always, if you have questions regarding your current situation contact the Team at Ogorek.