More insurers are coming forward every day with discounts, extended coverage and relaxed payment terms for insureds affected by shelter-in-place and other conditions required during the coronavirus crisis.
Progressive Insurance announced it is providing approximately $1 billion to its drivers as a result of fewer claims that come with less frequent driving. 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 customers with a policy in force as of May 31 will be credited 20% of their May premiums in June.
In addition, the insurer is:
- Suspending cancellations and non-renewals on personal and commercial lines policies for non-payment through May 15.
- Providing commercial lines customers with a business owner or general liability policy underwritten by Progressive a 20% credit on April and May monthly premiums
- Expanding coverage for personal auto customers temporarily delivering food or medicine and allowing commercial customers additional coverage options for delivery
For communities, Progressive is donating $8 million to charities focused on hunger, health and homelessness and providing delivered meals for its for-hire trucking customers, first responders and health care providers.
“We’re grateful to be in a position to give back,” said Progressive President and CEO Tricia Griffith. “We will continue to do what we can to help based on the current data available to us and will continue to monitor how this unprecedented situation plays out.”
The Travelers Companies announced it is giving U.S. personal auto insurance customers a 15% credit on their April and May premiums. The company said it is working with regulators to obtain the necessary approvals.
“Our customers are doing their part to stay at home and help stop the spread of COVID-19,” said Alan Schnitzer, chairman and chief executive officer of Travelers. “Our new program recognizes their contribution to the effort we all need to make to protect our health and safety and the resulting decrease in miles driven and auto claims.”
Separately, Travelers is offering auto coverage for customers who are now using their personal vehicles to make food, grocery, pharmacy and medical supply deliveries.
In addition, Travelers is offering billing relief to customers, accelerating more than $100 million in commission payments to eligible agents and brokers and pledged $5 million to assist families and communities.
USAA will be returning $520 million to its members. The insurer said the payment is a result of data showing members are driving less due to stay-at-home guidance across the country. Every member with an auto insurance policy in effect as of March 31 will receive a 20% credit on two months of premiums in the coming weeks.
“We understand the impact this pandemic is having on our country, and especially our military community and their families, many of whom also are working on the front lines of the crisis. Returning premiums provides timely help for our members,” said USAA President and CEO Wayne Peacock.
This is just one of several steps USAA has taken to provide financial assistance to members, including special payment arrangements and expanded auto insurance coverage for members using their personal vehicles for deliveries.
Additionally, USAA has committed $4.4 million to help military-focused and other nonprofits respond to this pandemic.
In the commercial lines space, Starr Insurance Companies’ Aviation is making accommodations under its general aviation policies by extending certain training and medical-certification deadlines for insured pilots until June 30 or pandemic social-distancing mandates are lifted.
“We quickly saw that Covid-19 mitigation efforts could affect pilots whose policies require an annual training event and pilots subject to regulatory aviation requirements,” said Steve Blakey, president of Starr Insurance.
GEICO, Farmers, Liberty Mutual
These carrier announcements came a day after three other insurers revealed their offerings.
Auto insurer GEICO said it will give back $2.5 billion in the form of a 15 percent credit to its auto and motorcycle customers as their policy comes up for renewal between April 8 and Oct 7. The credit will also apply to any new policies purchased during this period.
Farmers Insurance said it is giving a 20% discount to more than 115,000 of its business insurance customers. Liberty Mutual is refunding 15% of premium for two months to personal auto insurance customers.
AmFam, Allstate, Next
Earlier this week, American Family Insurance said it will return approximately $200 million to its auto insurance customers. The premium relief will come in the form of a one-time full payment of $50 per vehicle.
Also this week, Allstate announced that Allstate, Esurance and Encompass personal auto insurance customers will receive a premium credit of 15% of their monthly premium in April and May, totaling more than $600 million. Allstate said its telematics data shows that people are driving between 35% and 50% fewer miles in most states.
Digital commercial lines insurer Next Insurance is cutting April premiums by 25 percent for its customers with general liability, professional liability and commercial auto policies.
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