In response to the COVID-19 outbreak, many auto insurance companies are offering their customers refunds on policy premium payments. Due to shelter-in-place orders in most states, there are fewer drivers on the road and, consequently, fewer automobile accidents. As a result, some companies are refunding money normally paid out in claims back to their policyholders.
USAA, the financial services company that caters to military members and veterans, has announced it will give every member with an auto insurance policy in effect as of March 31, 2020, a 20% bill credit on two months' worth of premiums in the coming weeks. The credit will be applied automatically; no action is necessary on the policyholder's part.
GEICO, another insurance company that caters to military members and veterans, as well as government employees, has announced it will provide a 15% credit on new and existing auto and motorcycle insurance policies that are renewed or purchased between April 8 and Oct. 7, 2020. Again, the discount will be given automatically.
Allstate Insurance Company will give personal auto insurance customers a 15% credit on their policies based on the April and May monthly premiums. The credit will either be refunded directly to the customer or given as a bill credit, depending on the customer's preferences.
Citing the rise of internet use for everything from banking to online public schooling, Allstate will also offer free identity protection to all U.S. residents, whether they are customers or not. People who sign up for Allstate Identity Protection will receive the product free until the end of 2020.
Progressive Insurance will also be giving its auto insurance customers a 20% refund on policy premiums for the months of April and May. The refund will be given in the form of a discount to those who are paying their premiums on installments or a refund to those whose premiums are paid in full.
Liberty Mutual Insurance will give its personal auto insurance customers a 15% refund on two months of auto premiums as well. The automatic refund will either be in the form of a payment or credit to the customer's bank card.
American Family Insurance will give its customers a one-time, $50 payment for each vehicle insured under a personal auto insurance policy with the company.
State Farm Insurance is offering its Good Neighbor Relief Program which offers most policyholders a 25% premium discount through May 31. They say that the discount, which averages $20 per month, will be automatically applied to policies.
Most insurers are offering relaxed payment options for those who are financially impacted by the COVID-19 outbreak; many are also refraining from canceling policies due to non-payment, if circumstances warrant.
Most banks and credit unions are also offering special financial assistance programs as a result of economic hardships their customers may be facing due to the pandemic. These include loan assistance, penalty-free early withdrawal of certificates of deposit, secured lines of credit, waivers of late fees and more. Check with your financial institution for more information.
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