Some auto insurance companies are providing refunds of premiums due to the lower number of cars on the road.
Many companies are announcing their response to COVID-19, trying to help consumers during these trying times – auto insurance companies are no exception. Amid the coronavirus outbreak, auto insurance companies are offering premium refunds or discounted car insurance premiums due to coronavirus.
Social distancing and stay-at-home orders have kept most people off the roads, which means there are fewer accidents. Insurance companies can therefore offer relief to policyholders in the form of lower premiums. They are giving back by refunding portions of the premiums paid or credit upcoming premiums over the next few months.
State Farm is giving back to its customers with a $2 billion dividend. The exact amount you’ll receive depends on the state you live, but on average State Farm says customers should receive around 25% of their premiums from March 20 to May 31. Customers should see the credit starting with their June statements.
Allstate is giving the Allstate Shelter-in-Place Payback, which totals $600 million in April and May to its customers. Each customer should receive around 15% of their April and May premiums back in their bank account or as a statement credit.
Farmers Insurance is also giving back to customers in the wake of COVID-19, by providing a 25% statement credit on all Farmers and 21st Century insurance policies. Drivers should see the credit on their statement. If you paid your insurance in full, Farmers will send you a refund.
Geico has really taken care of its customers by providing a 15% discount on the full next policy premium. In other words, drivers will receive a 15% discount on the six-month premium amount on premiums due between April 7, 2020 and October 7, 2020. You’ll see the credit on your next statement.
Liberty Mutual started the Personal Auto Customer Relief Fund, which provides drivers with a 15% refund on two months of premiums starting with April 7, 2020. Liberty Mutual is issuing refunds automatically.
Insurance companies are basically sharing their dividends in a way to give back to the community during this trying time. In addition to the refunds and credits, many insurance companies are also putting a temporary stop to canceled policies due to non-payment.
If you find yourself unable to pay your car insurance, don’t just assume your insurance company will have your back – make sure you call them. Tell them what is going on and see what options you have. This way you can avoid canceled policies but may get the extra grace period you need to make your payment.