Right now is a scary time. Events are being cancelled, people are isolating themselves, and authorities are asking us to wear a mask to shop for groceries. Thankfully, auto insurance companies knows this is a hard time financially for their customers. We have summarized below what some of the major insurance companies are offering to customers to alleviate the financial strain through this difficult time.
Allstate: Allstate is giving 15% premium credits for April and May 2020. They are pausing policy cancellations for nonpayment until the end of the COVID-19 state of emergency. Allstate is allowing their insured drivers to either delay two consecutive payments without penalty or to pay what they can afford with no minimum requirement leaving the total unpaid balance to be spread across the remaining bills. They are also expanding coverage for insured drivers who use their personal vehicles to deliver food, medicine, and other goods for commercial reasons throughout the COVID-19 state of emergency. For more information, click on the two following links: https://www.allstatenewsroom.com/news/allstate-is-providing-more-than-600-million-to-auto-insurance-customers-amid-pandemic/ and https://www.allstatenewsroom.com/news/amid-crisis-allstate-helping-customers-with-extended-coverage-payment-relief/.
American Family: American Family is offering one-time payments of $50.00 for each personal automobile they insure. This means that you can receive $50.00 for each vehicle, not just $50.00 for each policy. For example, if you have two vehicles under your American Family policy, they will give you $100.00. For more information, click here: https://www.amfam.com/relief-payment.
Erie Insurance: Erie has decided to help the relief efforts by providing rate reductions for their commercial and personal customers. They estimate helping their insured drivers saving a total of $200 million throughout the twelve states Erie Insurance operates. If you are an Erie insured and you need relief, call Customer Care at (800) 458-0811 to discuss their options. For more information, click here: https://www.erieinsurance.com/support-center/covid/financial-relief.
Esurance: Esurance is giving their insured drivers up to 15% of April and May 2020’s monthly premiums back, depending on the monthly premium. In states where an emergency order is in place, they are extending their insured drivers’ coverage to include using personal vehicles for commercial delivery of food, medicine, and essential services. On a case-by-case basis, Esurance is also willing to discuss payment flexibility if you call their 1 (800) 378-7262 number. For more information, click here: https://www.esurance.com/info/covid19.
Farmers: Farmers is reducing premiums for April 2020 by 25%, and offering refunds to those who have already paid. They are pausing cancellations of policies for nonpayment through May 1, 2020 and any unpaid balance will carry over to the next billing statement with no late fees. Additionally, Farmers is extending personal policies to cover insured drivers who have started making food, medicine, and medical supply deliveries using their personal vehicles through April 30, 2020. For more information, click here: https://www.farmers.com/covid-19-notice/.
Founders: Farmers is offering a 30-day grace period on cancelations through May 1, 2020. They are also waiving late fees for all policies. To obtain the grace period, call (800) 972-8778, or check their website at: https://www.foundersinsurance.com/Default.aspx.
Geico: Geico is providing a 15% credit towards your next 6-month or 12-month policy. This 15% credit will go towards any new policies purchased between April 8 and October 7, 2020. For example, if you buy a $1,000 policy, you will get a $150.00 credit towards that policy. For more information, click here: https://www.geico.com/about/coronavirus/.
Grange: Grange is offering 25% premium credits for the months of April and May 2020, pending regulatory approval. Their estimation of the total credit is $25 million throughout the thirteen states in which they operate. Grange is also temporarily suspending cancellations of policies due to nonpayment. For more information, click here: https://www.grangeinsurance.com/coronavirus.
Liberty Mutual: Liberty Mutual is giving their insured drivers a 15% refund on two months of their premium. They will stop the charging of late fees and will pause cancellations until June 1, 2020. For more information, click here: https://www.libertymutual.com/covid-19.
Nationwide: Nationwide offered a one-time premium refund of $50 per policy for personal auto policies. If you are a Nationwide insured, you should get the refund by the end of April 2020 and it will be credited to your account. For more information, click here: https://blog.nationwide.com/news/nationwide-covid-19-refund/?utm_campaign=c19&utm_source=nwhp&utm_content=refundbanner
Progressive: Progressive’s insured drivers will be credited 20% of their April 2020 premium in May 2020 and will be credited 20% of their May 2020 premiums in June 2020. They are suspending cancellations and non-renewals for nonpayment through May 15, 2020 and are also extending payment leniency, waiving late fees, and pausing collections. Progressive is temporarily extending coverage for personal policies to deliver food and medicine commercially. They are also deferring deductibles for those who cannot afford to pay out of pocket for car repairs. For more information, click here: https://progressive.mediaroom.com/2020-04-08-Progressive-provides-1-billion-to-customers.
State Farm: State Farm is giving their insured drivers about a 25% credit on their premiums from March 20 through May 31, 2020. They stated it is about $2 billion dividend. The reasoning is that there are less people on the road, therefore less claims. For more information, click here: https://newsroom.statefarm.com/good-neighbor-relief-2-billion-dividend/.
Travelers: Travelers is offering their insured drivers 15% credit on their April and May 2020 premiums. They are also suspending cancellations and non-renewals of coverage due to nonpayment through May 15, 2020 and no interest, late fees, or penalties will be charged. For more information, click here: https://www.travelers.com/about-travelers/covid-19-coronavirus-update.
USAA: USAA is giving their insured drivers 20% credit on two months of premiums. Additionally, they will not cancel policies or charge late payment fees through June 17, 2020. They are expanding coverage on personal policies to include the use of personal vehicles to deliver food, medicine, or other good for commercial purposes. However, they are not extending it to cover driving for a Transportation Network Company app-based delivery service (ex. Uber or Lyft). For more information, click here: https://communities.usaa.com/t5/Press-Releases/USAA-to-Return-520-Million-to-Members/ba-p/228150?_ga=2.33892833.1108490997.1587121275-1663539429.1587121275.
If your insurance company is not listed, call your insurance agent or company direct and inquire what your insurance company is doing to give back to customers. What is important to remember: you are not alone.