As weíd hoped, a number of automakers are taking Allstateís lead by providing some financial help to drivers during the COVID-19 crisis by way of returning some premiums, offering credits and other programs. (Makes sense, given people arenít driving nearly as much.) To date, the list of auto insurance companies offering various assistance includes Allstate, Geico, Liberty Mutual and Safeco. Farmers Insurance is currently extending premium relief to its business customers.
Allstate was the first to announce a Shelter-in-Place Payback plan that will return $600 million to its customers.
- Most Allstate, Esurance and Encompass personal auto insurance customers will receive 15% off their monthly premium in April and May. The fastest way for customers to receive this payback is via the Allstate Mobile app, but you can also get it through a credit to your bank account, credit card or Allstate account.
- Allstate is also expanding insurance coverage for customers who use their personal vehicles to deliver food, medicine and other goods for commercial purposes. (Standard personal auto insurance policies typically exclude this coverage.)
- Allstate will also delay payments without penalty. The Special Payment Plan gives auto and homeowners insurance customers the choice to delay two consecutive premium payments. Customers also can choose to pay what they can afford.
Allstate is offering its free identity protection to all Americans who sign up for it. Read more about Allstateís COVID-19 response here.
GEICO is providing a 15 percent credit to its auto and motorcycle policyholders as their policies come up for renewal between April 8 and October 7, 2020. The company says it expects credits to average about $150 per auto policy and $30 per motorcycle policy. GEICO estimates the benefit to its 18 million auto and one million motorcycle policyholders to be approximately $2.5 billion. Read more here.
Other COVID-19 relief actions include:
Read full details here.
- Pausing cancellation of coverage due to non-payment and policy expiration through April 30, 2020.
- Offering special payment plans, to those who need it once normal billing operations are scheduled to resume.
Liberty Mutual and Safeco
Liberty Mutual and Safeco auto insurance customers will also receive 15% refunds on two months of their premiums.
- Personal auto insurance customers will receive a 15% refund on two months of their annual auto premium as of April 7, 2020, pending regulatory approval.
- The refunds will begin in April, and will be issued either by check or in the manner the customer made their most recent payment.
- The payments will happen automatically.
- Liberty is also expanding all personal auto policies to cover customers who use their personal vehicles to deliver food and medicine. (Standard Safeco personal auto policies typically exclude such coverage.) This additional protection is in effect for all personal auto policies in all states for losses occurring from March 16 to May 22, 2020, and reported by July 1, 2020.
Liberty Mutual notes this action will return $250 million to consumers. The company will also pause cancellations for missed payments as well as late fees. Read more about its payment flexibility options here.
American Family insurance
American Family Insurance customers can also expect some money back. The company says it will make a payment of $50 per vehicle covered by one of their policies. The average relief check will be $100. American Family says it expects to complete the printing and distribution of all 2.3 million checks within 60 days. This action will return approximately $200 million to its auto insurance customers. Read more here.
Every member with a USAA auto insurance policy in effect as of March 31, 2020, will receive a 20% credit on two months of premiums in the coming weeks. Read more here.
Farmers and 21st Century branded auto customers will receive a 25% reduction in April premium to reflect the changed driving environment resulting from various stay-at-home guidelines issued across the country. Read more here.
Farmers is also offering partial premium paybacks to its business customers to help them get back on their feet. Farmers says 115,000 Farmers Insurance Business Insurance Customers will receive a monthly premium credit of 20 percent over the next two months. Read more here.
Itís also pausing cancellations due to non-payment through May 1 and offering deferred payments to personal auto insurance customers, but says premiums will continue to accumulate. Read more about the COVID-19 actions here.
Farmers also temporarily modified its Farmers branded auto policies to extend a customer's existing personal auto and motorcycle insurance coverages when delivery drivers use their personal automobile or motorcycle for the delivery of food, groceries, pharmacy and medical supplies.
UDPATES as of 4/10:
Amica Insurance's COVID-19 Auto Premium Relief Program will provide auto customers insured as of April 1, 2020, a 20% credit on their auto premiums for April and May, pending regulatory approval. Read more here.
On average, State Farm Mutual auto customers can expect to receive a credit of about 25 percent of premium for the time period March 20 through May 31; exact percentages will vary by state. Every State Farm Mutual auto insurance customer will receive credits applied against bills beginning as early as June. Read more here.
Subject to approval by state regulators, Progressive personal auto customers who have a policy in force as of April 30th will be credited 20% of their April premiums in May and personal auto customers with a policy in force as of May 31st will be credited 20% of their May premiums in June. Read more here.
Nationwide is offering a one-time premium refund of $50 per policy for personal auto policies active as of March 31, 2020. The refund is equivalent to an average savings of 15 percent for two months and is on top of existing discounts customers already earn. It will be returned to customers in the last form of payment they have made, whether electronic or paper. The refund will arrive in the next 30 days, subject to individual state regulatory approval. Read more here.