More Midwest Insurers Offering Auto Premium Relief to Insureds

April 20, 2020

More Midwest-based insurers are offering premium payment relief to their auto insurance customers as a result of the COVID-19 health crisis.

Branch Insurance, Grange Insurance, Indiana Farm Bureau Insurance, Ohio Mutual Insurance Group and Westfield Insurance are among the Midwest-based insurers that recently announced plans to help their customers with auto insurance premium relief because driving activity has slowed down as a result of the coronavirus pandemic.

Branch

Branch, a Columbus, Ohio-based insurtech startup, is giving back 15% of monthly insurance premiums to auto policyholders in response to the current health crisis. This credit will apply to auto policies in effect during April and May and will be offered in unique options. Policyholders will be able to receive this credit themselves or help someone that is struggling financially, through the Branch nonprofit entity SafetyNest.

Grange Insurance

Columbus, Ohio-based Grange Insurance said its auto insurance customers will receive a 25% premium refund for April and May related to the various COVID-19 shelter-in-place orders. The company estimates the impact to be up to $25 million in relief throughout all of its operating states.

Grange also is offering a grace period to pay premiums for personal and commercial policyholders impacted by the circumstances of the COVID-19 crisis. In addition, to support its commercial restaurant clients and personal auto policyholders who work in the restaurant industry, the company has temporarily suspended the enforcement of the food delivery exclusion in personal auto policies. For insured restaurant owners that need to offer food delivery services, Grange is providing commercial auto coverage to address the gap during the crisis.

Indiana Farm Bureau Insurance

Indiana Farm Bureau Insurance is offering premium payment due date extensions from March 19, 2020, to May 18, 2020, to insures who need to delay payment. The company is also issuing premium refunds to auto insurance clients. The company said customers can expect to receive $20 refunds for each personal auto policy. Customers with multiple vehicles insured with Indiana Farm Bureau will receive $20 for each vehicle.

Ohio Mutual

Ohio Mutual, based in Bucyrus, Ohio, is offering personal auto premium credits on more than 80,000 personal auto policies for an estimated total of $6 million. The company is voluntarily providing a 25% personal auto premium credit that applies to an 11-week period (March 16 – May 31, 2020) for all policies in-force on May 31. Credits will be automatically applied to customers’ first invoice after June 1. Those with a balance less than the credit will receive a refund by check.

Westfield Insurance

Personal auto customers of Westfield Insurance, based in Westfield Center, Ohio, will receive a 15 percent credit on their eligible monthly auto premium for the months of April, May and June 2020. Customers with an active personal auto policy as of April 30, 2020, will receive the full credit to their account in the month of May 2020. Altogether, Westfield is returning more than $16 million dollars to personal insurance customers.

Westfield is also offering flexible billing solutions to help customers facing financial hardships.

In addition, Westfield will:

  • Provide coverage to customers with a Personal Auto policy who are engaged in delivery of essential goods, including food delivery.
  • Waive the limit for additional living expenses for customers who have experienced a claim that requires them to relocate from their residence where repairs are delayed as a result of business closures and other servicing difficulties associated with the COVID-19 pandemic.
  • Waive the limit for rental reimbursement for customers who have an insured vehicle in for personal auto repairs as a result of a claim and repairs are delayed as a result of business closures and other servicing difficulties associated with the COVID-19 pandemic.
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