Coronavirus

Car insurance company refunds because of Covid-19 pandemic

Auto insurers are issuing $10.5 billion in coronavirus refunds with freeways and roads abandoned due to the ‘stay at home’ period during the outbreak.

Car insurance company refunds because of Covid-19 pandemic
ROBYN BECK AFP

The country’s largest auto insurers are sending a total of $10.5 billion back to customers. Amongst these companies are Allstate, Geico, Liberty Mutual, USAA, Chubb along with others providing deals for customers. Since the quarantine period started in the United States in mid-March people have abandoned highways and roads to help reduce the spread of the coronavirus.

Auto insurance companies want to help the people who have been responsible and have stayed at home during the outbreak. They will start giving refunds and credits to these people, who only have to pick up the phone and ask.

According to Arity, a data and analytics firm owned by Allstate, the total number of miles driven in the U.S. since 8 March until the time of writing is down by more than half.

List of auto insurers that are offering help to their customers

State Farm: They will give customers a total of $2 billion in rebates and most policyholders will get a 25% credit for the weeks between 20 March and 31 May. Also they said that the percentage awarded will vary by state.

Chubb Auto insurance: They will offer a 35% premium deduction for April and May and will give out additional discounts over the subsequent months.

Geico: They will give back about $2.5 billion to its auto and motorcycle customers. The company will issue a 15% credit to those who come up for renewal or new policies between 8 April and 7 October.

Allstate and Liberty Mutual: Both companies are issuing a 15% refund for two months on their annual premiums. Allstate will return about $600 million to its customers, while Liberty Mutual will return about $250 million. Most of their customers will receive their rebate directly to their bank accounts that are on file.

USAA: a member-owned association will return a total of $250 million to its policyholders and receive a 20% credit for their premiums for the months of April and May.

American Family Insurance: They will return roughly $200 million to policyholders and return $50 for each vehicle insured.

Hartford: They will give back about $50 million to auto customers in the next few months and they will receive a 15% refund on their April and May premiums.

Farmers Insurance and 21st Century Insurance: Both companies will receive a 25% reduction in April for premiums.

Travelers: They will give their auto insurance customers a 15% credit on their April and May premiums.

The Hanover Insurance Group: They will return 15% of April and May to their auto premiums customers and will total about $30 million in refunds.

MetLife: They will give a 15% credit for April and May premium members.

The flurry of discounts and rebates makes it an opportune time for drivers with policies elsewhere to see what their car insurance company can do for them, according to one consumer advocate.

“You’ve got that leverage,” said Robert Hunter, director of insurance at the Consumer Federation of America. “They want to hold onto their customers, they’ve got to treat them right.”