Car Insurance Refunds Become Standard Issue

With less traffic on the road, there have been fewer accidents and fewer car insurance claims. And the prospect of paying claims is what auto insurance base their rates on. Several car insurance companies have now stepped up to offer their customers refunds.

Car Insurance Refunds at a Glance

• American Family Insurance: $50
• Amica: 20% credit for April and May
• Allstate: 15% for April and May
• Auto-Owners Insurance: 15% refund for April and May
• The Cincinnati Insurance Cos.: 15% credit for April and May
• Erie Insurance: Varies by individual and state
• Farmers: 25% for April
• Farm Bureau Insurance of Tennessee: Special payments will equal 24.75% of two months premium
• Geico: 15% on the entire six-month policy
• The Hanover: 15% refund for April and May
• The Hartford: 15% credit for April and May
• Liberty Mutual: 15% on two months’ of premiums
• Nationwide: $50
• NJM Insurance: 15% on the equivalent of three months of premium
• Progressive: 20% for April and May
• Selective Insurance: 15% credit for April and May
• Shelter Insurance: Approximately 30% refund for April and May
• State Farm: Average of 25% of premium owed between March 20 and May 31, 2020
• Travelers: 15% for April and May
• USAA: 20% on two months’ of premium

Allstate Payback

Allstate Insurance announced “Shelter-in-Place Payback,” which translates into a 15% refund of monthly premiums for April and May. This refund applies to Allstate, Esurance and Encompass policyholders. Customers will receive the money back via a credit to their bank account, credit card or Allstate account.

The fastest way to get the payback is through the Allstate Mobile app, according to the company.

In addition to the payback, Allstate is also offering:

• Free identity protection through the end of the year for U.S. residents, whether they are an Allstate customer or not.
• Payment relief such as special payment plans and extended grace periods without penalties.
• Extended auto coverage for delivery drivers. Typically, using your personal vehicle for deliveries, such as takeout food, groceries and other items, is not covered by personal car insurance policies. Allstate has temporarily extended coverage to personal auto policies for customers who are delivering food, medicine and other essential items during the COVID-19 pandemic.

Allstate says it will payback more than $600 million to its customers in the next two months.

American Family Insurance Refunds

American Family Insurance will give a one-time $50 payment for each vehicle insured with them in response to the COVID-19 pandemic. The company says that customers who have a private passenger policy in force as of March 20, 2020, will be eligible for the refund. Customers who have Classic and Advance policies are also eligible.

The following vehicles are not eligible for the one-time payment from American Family Insurance

• Cycles
• Campers
• Personal trailers
• Motor homes
• Specialty vehicles, such as golf carts, mini-trucks, personal mobility devices, snowmobiles, tractors and farm machinery
• Vehicles not owned by the customer but covered under a non-owner car insurance policy

American Family Insurance customers will receive refunds by check. Customers in Wisconsin can expect checks to be issued during the week of April 6, 2020, and customers in other states can expect checks pending regulatory approval.

If you’re having financial difficulty making your premium payments, American Family recommends you contact them directly at 1-800-MYAMFAM.

Amica Auto Premium Relief Program

Amica says every customer that had a car insured with the company on April 1, 2020, will receive a 20% credit on their auto insurance premiums for April and May. The credits will automatically be applied and customers do not need to take any action.

Amica has stopped cancellations and non-renewals of policies for non-payment through June 2, 2020.

Auto-Owners Insurance Premium Refund Program

Auto-Owners Insurance will provide a 15% refund to personal auto insurance policyholders for the months of April and May (pending regulatory approval).

Auto-Owners says customers can contact the company to discuss payment options such as deferring the minimum amount due, changing a due date, changing a payment plan or getting a payment extension.

The Cincinnati Insurance Cos.

The Cincinnati says personal auto insurance policyholders will receive a 15% credit per policy on April and May premiums. The credit will automatically apply and customers do not need to take any action.

The Cincinnati says it has paused cancellations due to non-payment and is waiving late fees until at least April 30.

The company has also waived restrictions for customers who use their personal vehicles to make deliveries (such as groceries and medicine).

Farm Bureau Insurance of Tennessee Special Payments

Farm Bureau Insurance of Tennessee will issue $30 million in “special payments” to auto policyholders. The special payments will amount to 24.74% of two months of auto premiums.

The insurer says it covers about 1.2 million vehicles, the most in Tennessee. The payments are from reserve funds set aside to protect customers from catastrophes such as tornados and hail storms.

Farmers Insurance Reduction in Premium

Farmers Insurance and 21st Century personal auto insurance policyholders will receive a 25% reduction for their April premium. The reduction will be applied automatically and customers do not need to take any action.

Farmers has also implemented flexible payment plans and a temporary pause on cancellations for non-payment until May 1, 2020.

In addition, Farmers has temporarily expanded coverage for customers who use their personal cars or motorcycles to make deliveries of food, groceries, pharmacy and medical supplies.

Erie Insurance Reduced Rates

Erie Insurance says it will reduce rates for personal and commercial auto insurance customers in 12 states and D.C., where it operates. The actual rate reduction will vary by individual and the state they reside in. The premium adjustment will take effect at the time a new policy starts or at renewal time for existing customers.

Erie also offers individualized payment flexibility and can assist with setting up payment plans, delaying payment dates, and waiving late fees and penalties.

Geico Policy Credits

Geico has announced it will provide a 15% credit to its auto and motorcycle insurance customers who renew their policies between April 8 and Oct. 7, 2020. This credit also applies to any new policies purchased during this period.

Geico customers who renew their policies during this time frame will automatically receive the credit and do not need to take any action.

Geico says the average semi-annual premium for its customers is about $1,000. It expects credits to average about $150 per auto insurance policy and $30 per motorcycle policy.

Geico has also paused cancellation of coverage for non-payment through at least April 30, 2020, and offers special payment options for customers.

The Hanover Cares Refund

The Hanover Insurance Group will refund personal auto insurance customers 15% of April and May premiums. It will credit April in-force policies in May and May in-force policies in June. Customers who have prepaid premiums will receive credits in each of the same months.

The Hanover will offer flexibility on bill payment options for customers facing financial hardship, including waiving fees and penalties, and placing a 60-day hold on cancellations and non-renewals for non-payment.

The company will also extend the number of days it will reimburse a customer for a rental car if their vehicle is in the shop due to a claim and cannot be repaired or returned.

The Hanover is also extending coverage to personal auto insurance customers for use of their vehicles to deliver food, medicine and other essential goods.

The Hartford Personal Auto Payback Plan

The Hartford says it will provide a 15% credit on April and May premiums for all customers with an active auto insurance policy as of April 1, 2020. Customers who paid their premiums in full will receive a refund in the form of the last payment method. Customers who pay their premiums in installments will receive a credit toward their next payments.

Credits and refunds will automatically be applied and customers do not need to take any action.

The Hartford will also waive late-payment fees and cancellations for non-payment until May 31.

Liberty Mutual Personal Auto Customer Relief Refund

Liberty Mutual announced it will refund 15% of two months of annual premium for personal auto insurance. This refund also applies to Safeco customers. Here’s how it works:

• Personal auto insurance customers will receive a 15% refund on two months of their annual premium, effective April 7, 2020, pending regulatory approval.
• The refunds will begin in April and will be by check or the method of the most recent payment (such as debit or credit card).
• The payments will happen automatically and customers do not need to take any action.

Liberty Mutual has also stopped late fees and cancellations due to non-payment for personal auto and home customers from March 23 through at least May 22, 2020. Liberty Mutual has also offered to extend payment due dates and provide personalized support for customers in need.

Liberty Mutual has also expanded coverage for customers who use their personal car to deliver food and medicine. This coverage also applies to Safeco customers. Expanded coverage for delivery drivers is effective from March 16 to May 22, 2020 and any claims must be reported by July 1, 2020.

Mercury Insurance Giveback Program

Mercury Insurance says it will give back 15% of monthly auto insurance premiums to customers in April and May. The refund will automatically be credited and customers will not need to take any action.

Mercury says customers who are facing financial difficulties should contact the company.

Nationwide Refunds

Nationwide says it will give a one-time premium refund of $50 per policy to personal auto insurance policyholders. The company says the refund is equivalent to an average savings of 15% for two months. The refund will go to customers in the last form of payment they used and will arrive within 30 days, subject to each state’s regulatory approval.

Customers do not need to take any action to receive the refund.

Nationwide also extended coverage for customers who are using their personal vehicles to make food and prescription deliveries.

Nationwide encourages customers to to contact them to discuss financial hardships and payment options.

NJM Policyholder Relief Program

NJM Insurance says personal auto insurance customers will receive a 15% refund equivalent to three months of annual premium. This refund will be automatically applied and customers do not need to take any action. The refund will be made by check or a credit to the customer’s bank account.

NJM Insurance says it will not cancel policies due to non-payment through April 30, 2020, and is offering customers payment flexibility, including payment plans.

Progressive’s Apron Relief Program

Progressive’s personal auto insurance customers with a policy in force as of April 30, 2020, will be credited 20% of their April premiums in May. Customers with a policy in force as of May 31, 2020, will be credited 20% of their premiums in June.

The credits will be applied automatically and customers do not need to take any action. Customers who paid their policies in full will receive a refund for the credited amounts.

Progressive has also suspended cancellations and non-renewals on personal and commercial auto insurance policies for non-payment through May 15, 2020. The company has also waived late fees and paused collections.

Progressive expanded coverage for personal auto insurance customers who are temporarily delivering food or medicine.

Progressive says it has deferred deductibles to help customers who cannot pay out-of-pocket to have their cars repaired.

Selective Insurance Premium Credits

Selective Insurance says its personal and business auto insurance customers will receive a 15% premium credit for April and May.

Selective Insurance says it will work with customers to provide individualized payment flexibility, including delay of policy cancellations, late payment notices, and late or reinstatement fees until May 31, 2020, or later, depending on individual states’ department of insurance guidelines.

Shelter Insurance

Shelter Insurance will issue payments to customers that represent approximately 30% of their personal auto insurance premiums for April and May. Shelter Insurance subsidiaries AmShield Insurance, Haulers Insurance and Say Insurance will also issue refunds. If a customer paid their premium through a bank account, the refund will be directly deposited into the account; otherwise customers will receive a check.

Shelter Insurance says it is also providing other relief to individuals who lost their jobs or otherwise have been negatively impacted by the COVID-19 pandemic.

State Farm Good Neighbor Relief

State Farm will pay a dividend averaging 25% of customers’ premiums owed between March 20 and May 31, 2020. You will receive the dividend as long as you were a customer in this time period.

Customers are eligible for the credit if they have a State Farm Mutual Auto policy covering an auto, motorcycle, RV, business use personal auto, commercial auto, school bus and/or antique/classic vehicle.

Customers don’t have to do anything to get the refund. The credits will start being paid in early June.

Customers with financial problems due to COVID-19 can talk to their State Farm agents about payment options.

Travelers Stay-at-Home Auto Premium Credit Program

Travelers says personal auto insurance customers will receive a 15% credit on their April and May premiums. The credit will be automatically applied and customers do not need to take any action. Travelers will continue to assess its Stay-at-Home Premium Credit Program as the COVID-19 pandemic evolves.

Travelers previously announced that it will not cancel or non-renew coverage due to non-payment through May 15, 2020. Nor will the company charge interest, late fees or penalties during this time.

Travelers will also provide coverage to customers who use their personal vehicle to make food, grocery, pharmacy and medical supply deliveries.

USAA Return of Premiums

USAA says every member with an auto insurance policy effective as of March 31, 2020, will receive a 20% credit on two months of premiums. Members will automatically receive a credit applied to their bills and will not need to take any action.

USAA also says they will not cancel members’ auto or property insurance policies or charge late fees on late payments through June 17, 2020.

USAA will also expand auto insurance coverage for members who are using their personal vehicles to deliver food, medicine and other goods for commercial purposes.

Consumer Groups Called For Financial Relief

In recent weeks, consumer groups urged insurance companies to issue refunds to policyholders. Allstate and American Family Insurance are the first companies to do so.

Many insurance companies have responded to the COVID-19 pandemic with options to help reduce customers’ financial burdens, such as extended grace periods for missed payments, payment plans, and waiving late fees and penalties.