Personal Insurers Offering Discounts and Refunds During COVID-19

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Unless you’re classified as a key worker, or you work in an essential business, then you’re likely spending a lot less time behind the wheel right now. Because people are driving less, there are lots of insurers who are offering discounts and refunds to customers in the form of a credit. With almost all of the major insurers in America now having come forward with COVID-19 support packages for their policyholders, we explore the different support insurers are offering. We’ve compiled an up to date, comprehensive list of the discounts and refunds being offered right now and listed them in an easy to find format so you can check to see what discounts your insurer is offering during COVID-19.

According to the Insurance Journal, two consumer groups, namely, the Center for Economic Justice and the Consumer Federation of America, requested that state insurance regulators review premium offset payments in light of the expected reduction in claims. Most consumers pay an insurance premium that is calculated on the expected number of miles being driven in a month, and with most people now not traveling to work on a regular basis, some form of relief was called for.

Starting with Allstate on April 6th, there has been a wave of insurance companies announcing their support for customers during COVID-19. While this article is focussed on personal auto insurance discounts, there are many other refund schemes being put into place “where the risk of loss has fallen substantially as a result of the COVID-19 pandemic.”

Aside from discounted premiums, many insurers are also relaxing their payment terms and cancellation periods for non-payment are also being waived. They are also adding coverage for free, such as Identify theft coverage, personal car usage for deliveries of goods, and more.

Which insurers are offering discounts due to COVID-19?

As you’ll soon see, most of the larger auto insurance carriers have communicated details of a ‘payback’ plan for any customers who are no longer having to use their vehicles to drive to and from a regular place of work; or use their cars in their usual way. While some of these insurance payback programs are only applicable to personal auto insurance policies, they can benefit those who use a personal vehicle for work.

To make it easy for you to search and find your insurer, we have alphabetized the following list of their COVID-19 offerings and discounts.

A

Allstate’s COVID-19 Offering

Personal auto insurance policyholders of Allstate, Encompass, and Esurance will get 15% of their April and May monthly premium back via a credit; either to their credit card, bank account, or to their Allstate account. This package is going to send approximately $600 million back to their customers. Both auto and homeowner policyholders can delay two consecutive payments of their premiums. As an extra offering, they are also giving free identity protection to any American; irrespective of whether they are an Allstate customer or not. For any Allstate policy that covers customers for using a personal vehicle for the delivery of medicine, food, or other commercial goods, they are boosting their coverage options.

American Family’s COVID-19 Offering

It’s estimated that American Family are set to return approximately $200 million to auto insurance policyholders. They have decided to do this in the form of a one-off $50 payment per vehicle that is covered. It’s called a relief check, and with the average American Family household having two vehicles, the average check will be $100 per household. These payouts are going to be based on personal auto insurance policies that were in place as of March 11th. If you took out an American Family after this date, then you are excluded from the relief check scheme.

Private passenger auto coverage has also been extended to provide coverage for food delivery drivers that have been hired by restaurants. As an extra offering, the company is also providing additional options to policyholders. Such as payment plans, payment deferrals, and the suspension of late fees.

Amica’s COVID-19 Offering

Amica has decided to provide their personal auto insurance policyholder’s a 20% discount on their April and May premiums.

Arbella Insurance Group’s COVID-19 Offering

Arbella is giving their private passenger auto insurance policyholders a 20% discount for a three-month period. The average saving this is expected to yield per policyholder is $60 per vehicle. They have also stated that they will not cancel any policies due to non-payment between April to June 1st. For any late payments or cases of insufficient funds, there will be no fees charged.  

Auto-Owners Insurance’s COVID-19 Offering

All personal auto insurance policyholders will receive a refund of 15% for the months of April and May.

C

Chubb’s COVID-19 Offering

Chubb is giving all personal auto insurance policyholders a credit that reflects a 35% premium reduction for the months of April and May, upon renewal of their policy. They have also stated that there will be extra discounts for any additional months, as the situation warrants. It is expected that the average credit per vehicle would be approximately $110.

For Chubb’s commercial auto insurance policyholders who renew between April-August 1st, there will be an automatic reduction of 15% applied to their premiums.

Cincinnati Financials’ COVID-19 Offering

Cincinnati has announced that personal auto insurance customers of both Cincinnati Casualty and Cincinnati insurance will get a credit to the value of 15% on their April and May premiums. They have also decided to waive any late fees and pause any cancellations due to non-payment until the end of May.

CSAA COVID-19 Offering

The CSAA Insurance Group is giving personal insurance policyholders a refund/credit equivalent to the value of 20% of their monthly premium for a two-month period. This is thought to be roughly $100 million in total. This only applies to customers with an active policy as of April 30th.  Aside from this, CSAA is also hitting the pause button on any cancellations due to non-payment until the end of May. Also, for any personal insurance policyholders who are now using their vehicles to deliver medicine or food, this coverage is being provided at no additional cost.

E

Encova COVID-19 Offering

Over 80,000 of Encova’s personal insurance policyholders are set to receive a credit to the value of 15% of their April and May premiums. Like many others, they have also decided to offer restaurant owners with delivery coverage in their policy without any additional charge, they have suspended cancellations for non-payment, and they are extending grace periods.

Esurance’s COVID-19 Offering

Esurance is providing all auto insurance customers with a 15% payback for both April and May policy premiums. This will happen electronically, and the insurance refund will go to the last method of payment that was used on the account. If the electronic refund fails, then they will issue a check. To qualify, you will need to have an active auto policy and be up to date with any regular payments.

Erie’s COVID-19 Offering

Insurance rates at Erie are being reduced by up to $200 million across their personal and commercial lines. However, unlike others, they are not making any short-term adjustments with a credit or rebate; instead, they are to make adjustments to any new premiums and for policy renewals. There is no blanket figure that is being applied either, and the benefit of this change will vary from one state to the next, and between the different types of insurance and coverage options. Aside from these changes to auto insurance at Erie, they are also adding gift card reimbursement coverage to any home insurance policies. This will provide customers with reimbursement of any remaining balances that are left on gift cards that cannot be used due to closures.

F

Farm Bureau Insurance of Tennessee’s COVID-19 Offering

They are giving back personal insurance policyholders a total of 24% in their premiums for a two-month period, for every vehicle they have insured. This is thought to be around $30 million in value overall.

Farmers Insurances’ COVID-19 Offering

In total, more than 120,000 of Farmers Insurance customers are going to receive relief as part of their COVID-19 offering. Any auto insurance policies held with the company are set to see a reduction in their premiums by 25% over a two-month period. Policy cancelations because of non-payment are also due to be canceled until the end of May. The credit will be applied for a future bill or refunded back to a valid payment source, such as a debit or credit card that is already held on file.  To be eligible, customers must be up to date with their payments.

G

GEICO’s COVID-19 Offering

For any of GEICO’s customers with auto, RV, or motorcycle insurance, there will be a credit applied to the value of 15% of their monthly premium for a period of six months. However, this credit will be applied as their policy comes up for renewal between now and October 7th. For any new policies purchased during the same period, customers will also receive a credit of 15% in value. It is expected these credits will amount to $30 per motorcycle policy and $150 per auto policy, and this should benefit a sum total of 18 million personal auto insurance policyholders, and 1 million motorcycle insurance policyholders. They are also pausing policy cancellations for non-payment until the end of May.

Germania’s COVID-19 Offering

Germania Insurance is set to return approximately $6 million to their personal auto insurance customers in Texas. Through its reduced driving payback scheme, they are going to make a $25 payment back to policyholders who have valid coverage in place as of March 31st, 2020. The payment process is automatic and forms part of a larger support package for personal auto policyholders. The company is also waiving any late payment fees for their customers, and they are working with individual customers who might be faced with financial challenges at present. They have also modified their own claims process to accommodate the increasing number of vehicles that are now being used for delivery purposes. These changes are set to be in force until the end of May.

H

The Hanover Insurance Group’s COVID-19 Offering

This insurer is returning a total of 15% of the premiums for April and May to any eligible personal auto insurance policyholders. In total, this will cost the company around $30 million in premiums. They are extending their personal auto coverage for free to those who are delivering goods in their vehicles and offering extra flexibility of bill payment options. If a policyholder’s vehicle is in an auto shop, and it cannot be returned or repaired, they are also extended the total number of days they will provide rental car reimbursement coverage for.

As another benefit to personal home insurance customers, they are also waiving any policy limitations on additional living expenses for any homeowners who are forced from their homes due to a covered loss, such as a fire.

The Hartford’s COVID-19 Offering

Auto insurance policyholders of The Hartford are being given a 15% credit for their April and May insurance premiums as part of their ‘auto payback plan’. This credit will be given to all personal auto insurance policyholders with an active policy as of April 1st, 2020.

K

Kemper’s COVID-19 Offering

Kemper’s auto insurance policyholders are being given a 15% credit for their April and May insurance premiums. For any Kemper personal insurance customer with an active auto insurance policy as of April 30th, 2020, they will then get a credit on their April premiums in May. For any Kemper personal insurance customer with an active auto insurance policy as of May 31st, 2020, they will then get a credit on their May premiums in June. The total value of these payments to the Kemper is thought to be a total of $100 million.

L

Liberty Mutual’s COVID-19 Offering

Liberty Mutual’s auto insurance policyholders are being given a 15% credit for their April and May insurance premiums. In total, this means that between Safeco and Liberty Mutual’s personal auto insurance customers are to receive a sum total of around $250 million in credits on their premiums. The refund will be issued in the manner by which a customer submitted their most recent payment to the company, or by check when the electronic option is not applicable. Aside from this, they are also offering a range of flexible payment options to help customers facing short-term financial difficulties and coverage expansion options for delivery services.

M

Main Street America Group’s COVID-19 Offering

Between their personal and commercial policyholders, MSGA will provide almost $27 million in premium relief; with $16.5 of that being set aside for personal insurance policyholders alone. For personal auto insurance customers, they will receive a one-off payment of $50 per eligible vehicle. They are also offering temporary coverage for those individuals who might be using their personal vehicles for delivery services for food and medicine.

MAPFRE Insurance COVID-19 Offering

MAPFRE’s auto insurance policyholders in Massachusetts are being given a 15% credit for their April and May insurance premiums. This is at a total cost of $30 million to the company and delivers an average of $40 back to each policyholder. In the 13 other states that MAPFRE operates in, a similar relief package is being offered for the same time period of two months.

Mercury Insurance’s COVID-19 Offering

Mercury’s auto insurance policyholders are being given a 15% credit for their April and May insurance premiums across all 11 states they are operational within. In total, this equates to a total pay-out value of approximately $65 million.

MetLife Insurance’s COVID-19 Offering

Personal auto insurance policyholders of MetLife who are paid up to date on their premiums will get a 15% credit for their April and May premiums. Through July 1st, they are not canceling any policies due to non-payment. While many of their existing customers also have coverage for using personal vehicles for delivery services, they are extended this coverage to all personal auto insurance policies.

N

Nationwide’s COVID-19 Offering

All personal auto insurance policyholders are to get a one-off refund of $50 on their premiums for any active policies as of March 31st, 2020. In line with many other insurance companies, this is the equivalent of a saving of 15% over two months. In other areas, they have been extending payment terms and offering additional coverage for those needing to use a personal vehicle to make deliveries.

Next Insurance’s COVID-19 Offering

Next are offering their personal auto insurance customers a reduction of 25% of their April premium. However, this only applies to those who took out a policy before March 1st.

NJM Insurance Group’s COVID-19 Offering

This insurer covers the New Jersey, Pennsylvania, and Connecticut areas and will be providing personal lines auto insurance clients will a refund to the value of 15% of three months’ worth of premiums. This relief package is estimated to be at the cost of approximately $41.7 million.

North Carolina Farm Bureau Insurance COVID-19 Offering

For April and May, the NCFBI will give personal auto insurance customers a 20% dividend payment.

NYCM Insurance’s COVID-19 Offering

This New York personal auto insurance company will be offering roughly 230,000 policyholders a 15% credit back from their April and May premiums.

P

Plymouth Rock’s COVID-19 Offering

This insurer is offering a credit to the value of 25% for all new and existing personal auto insurance policies.  It is also waiving deductibles for collision or comprehensive coverage for any health care workers who incur an accident while traveling for work-related reasons.

Aside from this, for their home insurance policyholders, they are also applying alternative living expense coverage for any healthcare professional who needs to stay away from home because of work or illness. All policyholders are being given the option to donate any savings they made to non-profits organizations.

Preferred Mutual Insurance Company’s COVID-19 Offering

This insurer has launched their own ‘Stay Home Stay Assured Program’, that gives Massachusetts and New York personal auto insurance customers a 15% credit on their April and May premiums.  It is estimated that this program will automatically give back over $2.5 million to its customers in total. All refunds are issued via a check that will arrive in May.

Progressive Insurance’s COVID-19 Offering

Auto insurance policyholders at Progressive are set to benefit from almost $1 billion in support. For those personal lines auto policyholders who have a policy in force as of April 30th, they will receive a 20% credit back on their April and May premiums. The credit will be applied to any outstanding balance or next bill or refunded if the policy has already been paid in full. They are also suspending cancellations and non-renewals on any personal auto insurance policies for late payments until the middle of May, and they are expanding their coverage to include a temporary provision for those needing to deliver medicine or food.

S

Safety Insurance’s COVID-19 Offering

Safety Insurance’s auto insurance policyholders are being given a 15% credit for their April and May insurance premiums. It is also giving auto coverage for those who now need to use a personal vehicle for deliveries.

Selective Insurance’s COVID-19 Offering

Selective Insurance’s auto insurance policyholders will receive a 15% credit for their April and May insurance premiums. Aside from this, they are also offering payment flexibility and pausing any policy cancellations due to non-payment.

Shelter Insurance’s COVID-19 Offering

Selective Insurance’s auto insurance policyholders will get a payment that represents approximately 30% of their April and May insurance premiums. They have also eased their cancellation and lapsed policy rules.

State Farm’s COVID-19 Offering

State Farm is set to return approximately $2 billion in dividends to their personal auto insurance customers. This figure is in line with 25% of their insurance premiums from March 20th through to May 31st, although the exact percentage will vary on a state by state basis. State Farm’s auto insurance customers will receive credits that are to be applied against bills from as early as June.

T

The Travelers Companies’ COVID-19 Offering

This insurer is giving its personal auto insurance policyholders a 15% rebate on both April and May premiums. Traveler’s Insurance is also providing these policyholders with additional coverage if they are now having to make deliveries. It is accelerating more than $100 million in commission to agents and brokers to help during this difficult time.

U

Union of Vermont’s COVID-19 Offering

The Union of Vermont is offering their personal auto insurance policyholders in New York and New England a 15% rebate on both April and May premiums.

Utica National Insurance Group’s COVID-19 Offering

Utica is offering all personal auto insurance policyholders a 15% rebate on both April and May premiums. They have also introduced a temporary expansion of coverage for those customers who now need to use their personal vehicle for deliveries.

USAA’s COVID-19 Offering

Every member who holds an auto insurance policy will receive a credit to the value of 20% of their premiums for a two-month-period. The credit will automatically be applied to customers’ bills. The relief amount is estimated to total around $520 million. USAA have also introduced a temporary expansion of coverage for their personal auto policyholders who now need to use their own vehicles for deliveries.

W

Westfield’s COVID-19 Offering

Westfield is offering their personal auto insurance policyholders a 15% rebate on both April, May, and June premiums. Returning approximately $16 million to their customers in total. Like many others, they, too, have introduced a temporary expansion of coverage for policyholders who now need to use their personal vehicles for deliveries.

Final Thoughts

As you can see, almost all of the major and regional insurers are taking positive steps to support their customers during COVID-19. Some approximate values of the relief packages run into billions of dollars, and almost all companies are offering at least a 15% discount by way of refund or credit; for others, that figure goes as high as 35%. Insurers are stating that lower mileage and fewer claims during the crisis are the main reasons why they have been able to offer these relief packages.

 “These are challenging financial times for millions of Americans, and the country’s auto insurers are making it easier for their customers to get through this extraordinary time in U.S. history.”

Sean Kevelighan, President and CEO of the Insurance Information Institute.

According to the Insurance Information Institute, the sum total (so far) of the support that has been pledged amounts to just over $8.1 billion! However, it is thought this number is only set to grow even more as May gets underway and could potentially be upwards of $10 billion.

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