Several auto insurers are extending their insurance rebates and credits into June and beyond in the wake of the COVID-19 pandemic.
Allstate says it is extending its rebates to personal auto insurance customers because those customers are driving less and getting in fewer accidents during the coronavirus pandemic. Allstate said in a news release that it is extending its “Shelter-in-Place Payback” through June 30, 2020.
Allstate says the payback represents approximately $1 billion back to customers over three months. “While more people are back on the roads, the numbers of less severe accidents are below historical levels” said Tom Wilson, Chair, President and CEO. Allstate was the first major insurance company to announce in April that it would give its car insurance policyholders a credit of about 15% of monthly premiums because of the pandemic.
Allstate, Esurance and Encompass personal auto insurance customers will receive an automatic credit to their accounts, with most receiving 15% of their monthly premiums. Allstate says the amount was calculated using available data, including driving information from Arity, its mobility data and analytics company. It also reflects that the average cost per accident has increased, partially offsetting the cost savings.
With the increase in cybercrime as people connect virtually, Allstate is also extending its offer to give all U.S. residents free identity protection through the rest of 2020. There is no opt-out-requirement. US residents can take advantage of the offer regardless of whether they are already Allstate customers, by signing up at allstateidentityprotection.com before June 30, 2020.
Member-owned insurer USAA announced in April that it has expanded its auto insurance premium dividend program. The company originally said that it would provide its members a dividend of $520 million as a 20% credit on two months’ worth of premiums. But USAA later expanded it to cover three months, including June, returning an additional $280 million in dividends. The dividend affects customers with polices in effect as of April 30.
USAA says members should automatically receive the additional dividend as a credit applied to their auto and property insurance account. Members do not need to call, and no further action is required to receive the dividend.
The company says it has also provided financial relief to more than 620,000 members related to COVID-19, through an array of programs including:
- USAA Property and Casualty Insurance is offering special payment arrangements to assist members experiencing financial difficulties.
- USAA Property and Casualty Insurance is not canceling or charging fees for auto and property insurance due to late payments through at least June 17, 2020.
- USAA Property and Casualty Insurance is providing auto insurance coverage for members using their personal car to deliver food, medicine and other goods for their employers because of business operations changes due to COVID-19.*
- USAA Life Insurance Company is offering special payment arrangements on life and health insurance policies, including a 60-day extension to the 30-day grace period.
- USAA Life Insurance Company is waiving and reimbursing deductibles and co-payments for coronavirus-related testing received on or after Feb. 4, 2020, for members who have a USAA Medicare Supplement plan.
According to an article in USA Today, several other insurers also say they are giving customers a break.
GEICO is offering insurance premium relief for the full term of customers’ policies, which run for at least six months. “We were concerned that a credit for just a few months might just expose our customers to large catch-up payments once events returned to normal,” GEICO said in a statement to USA Today.
Nationwide and MetLife Auto & Home confirmed with USA Today that they will continue to assess the pandemic situation and driving trends to determine if they need to provide additional relief. Nationwide has extended assistance through June 15 for waiving late fees, “acceptance of hardship and billing holds” and is continuing to allow reinstatements for up to 60 days without a lapse in coverage. MetLife is offering payment leniency through the end of June.
State Farm revealed that it is reducing its insurance rates in every state by an average of 11%, beginning with policy renewals in August or September. “Current State Farm driving data and claims experience show a considerable decline in miles driven and fewer accidents,” said State Farm Senior Vice President Kristyn Cook-Turner in a news release. American Family has promised a similar 10% rate reduction for personal auto policies in force between July and December 2020.
More to Come?
There could be more rebates to come. If your policy is up for renewal in the coming months, contact your agent well ahead of your renewal date to see if your current coverage level is right for you. You might also want to sign up now for news updates from your insurer on its website or through its mobile app.
As always, contact your agent with any questions. Insurance agencies are looking to do right by their customers. At Farris Insurance, we’re here to help you navigate through this time.