Auto insurance companies including Allstate, Geico, and Liberty Mutual said they will give policyholders millions of dollars back because Americans are driving less during the coronavirus pandemic.
On Tuesday, Geico said auto and motorcycle policyholders will receive a 15% credit. The auto insurer estimates the benefit to its customers will be worth about $2.5 billion.
Geico cites shelter-in-place orders that have "reduced driving significantly" as a reason for the credits.
"This ongoing crisis has widespread effects that will linger," said Geico president and CEO Todd Combs in a statement. "That is why we wanted to give this credit for at least six months." Geico will also halt cancellation of coverage because of non-payments.
Geico is the latest auto insurer to give drivers their money back as they remain off the road due to the pandemic.
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Liberty Mutual and Safeco auto insurance customers will receive 15% refunds on two months of their premiums, Liberty Mutual said in a press release Tuesday, noting it will return $250 million to consumers. The company will also pause cancellations for not paying, and late fees.
"Today, more than ever, we recognize the uncertainty and financial challenges our customers are facing," said Liberty Mutual Chairman and CEO David Long in a statement. "We remain dedicated to serving our customers during this unprecedented pandemic."
On Wednesday, USAA said members with auto insurance policies will get a 20% credit on two months of premiums, totaling $520 million. The company will also halt fees for late and returned payments, allow members to stop non-payment cancellations, and simplify the process for setting up payment arrangements.
In a statement released Monday, Allstate announced it would return $600 million in premiums to customers. The company said most policyholders will get back 15% of their premium in April and May.
The credit will arrive either to their bank, credit card or Allstate account. "This is fair because less driving means fewer accidents," said Tom Wilson, Allstate chairman, president and CEO, in a statement.
The company said it will also offer payment relief to eligible customers and will expand coverage for drivers who use their vehicles to make deliveries. Allstate also will offer free identity protection for the rest of the year to all U.S. residents.
Meanwhile, American Family Insurance said it will return about $200 million to its policyholders because "they're driving less and experiencing fewer claims," said chief operating officer Telisa Yancy in a statement.
The company said they will make a payment of $50 per vehicle covered by one of their policies. The average relief check will be $100, said American Family.
Other insurers may follow suit. In a statement obtained by USA TODAY, State Farm said it is expected to make a decision on premiums by the end of the week. "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," said State Farm.
Progressive said it is exploring "how to best return some premium to customers to reflect the decreased exposure that comes with less frequent driving during the pandemic." The company said it expects to have plans in place soon.
The coronavirus pandemic has left many Americans stuck at home and driving a lot less. The sharp drop in driving has led to a plunge in gas prices over the past month. As of Tuesday, the national average gas price is $1.92, according to AAA. One month ago, the average was $2.40 per gallon.
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This article originally appeared on USA TODAY: Geico, Allstate, other auto insurers to give customers money back