Madison, Wisconsin-based American Family Insurance says it will return approximately $200 million to its auto insurance customers as the COVID-19 pandemic has dramatically altered driving habits and created financial uncertainty for individuals and families across the country
The premium relief will come in the form of a one-time full payment of $50 per vehicle covered by an American Family personal auto policy. The typical American Family household with auto coverage has two vehicles, meaning the average relief check will be $100.
American Family expects to complete the printing and distribution of all 2.3 million checks within 60 days, while diligently applying social distancing practices.
Checks will be mailed to customers in Wisconsin, where American Family Insurance is based, beginning this week, following recent approval from the state Office of Commissioner of Insurance.
Payments to customers in the company’s additional 18 operating states will follow, pending approval from their insurance regulators.
Relief payments will be based on personal auto policies in force as of March 11, 2020, the date the World Health Organization declared COVID-19 a pandemic. Business written after that date is excluded.
Allstate and its insurance subsidiaries have similarly pledged to help their personal auto customers with a payback plan. Allstate, Esurance and Encompass personal auto insurance customers will receive a Shelter-in-Place Payback, a premium credit that recognizes that people are driving less during this emergency. Most customers will receive 15% of their monthly premium in April and May, totaling more than $600 million.
Other American Family COVID-19 Related Initiatives
American Family is offering flexibility in several areas including payment deferral, payment plans, the removal of late fees, and suspending underwriting and non-renewal cancellations.
American Family has extended private passenger automobile coverage to food delivery drivers hired by restaurants.
In addition, to support communities, the American Family Insurance group, the American Family Dreams Foundation and the Steve Stricker American Family Insurance Foundation could provide more than $6.8 million to COVID-19 relief and other non-profits, including through a 2-to-1 match for charitable donations given by its agency owners and employees in their local communities.
In addition to Wisconsin, American Family Insurance operates in Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah and Washington.
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