The group of property/casualty insurers offering auto insurance premium discounts to recognize that insureds are driving less during the coronavirus crisis continues to grow, and now includes all major auto insurers. Most discounts are for personal lines auto customers, however a number of carriers are also targeting business customers.
According to the Insurance Information Institute, these and other auto insurers have announced refunds, discounts, dividends and credits totaling $8.1 billion. III estimates that this total will reach $10.5 billion as more auto insurers announce their offers.
Insurers have cited reduced policyholder mileage and fewer claims amid the COVID-19 crisis as the reasons they are able to offer these breaks.
The following is an alphabetical listing of insurers and a summary of their discounts and other offerings to date:
Allstate said all Allstate, Esurance and Encompass personal auto insurance customers will receive a 15% of their monthly premium in April and May, totaling more than $600 million. Customers will receive the money back through a credit to their bank account, credit card or Allstate account. Allstate is also offering free identity protection to all Americans through the end of the year even if they are not Allstate customers. Auto and homeowners insurance customers may choose to delay two consecutive premium payments. Customers also can choose to pay what they can afford. The insurer is also expanding insurance coverage for customers who use their personal vehicles to deliver food, medicine and other goods for commercial purposes.
American Family will return approximately $200 million to its auto insurance customers 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. Relief payments will be based on personal auto policies in force as of March 11. Business written after that date is excluded. American Family is also offering flexibility in several areas including payment deferral, payment plans, the removal of late fees, and suspending underwriting and non-renewal cancellations. The company has also extended private passenger automobile coverage to food delivery drivers hired by restaurants.
AmeriTrust Group Inc. in Southfield, Michigan, launched an “Economic Relief Payment Plan,” offering a zero-down payment relief plan for qualifying new business accounts beginning May 1, 2020. New qualifying admitted commercial property and casualty insurance accounts on a direct-billing basis will not be required to make any down payments or first month payments on their insurance policies. Instead, AmeriTrust will offer qualifying accounts a convenient 11-installment payment plan. The annual policy premium will be split equally across the 11 monthly installments with the first payment due 30 days after their policy effective date and monthly thereafter. The Economic Relief Payment Plan will initially be offered for a 60-day period. The Economic Relief Payment Plan is available from AmeriTrust’s admitted insurance company subsidiaries. The Economic Relief Payment Plan will initially be offered for a 60-day period. AmeriTrust also extended its guaranteed policy renewals program through July 31. The company previously informed its contracted retail insurance agencies that AmeriTrust’s admitted insurance carriers will guarantee renewal of all general business policies for accounts renewing up until July 1, 2020. The plans do not apply to program business, trucking business, excess workers’ compensation business, or monoline “pay-as-you-go” workers’ compensation policies.
Amica is giving a 20% credit on customers’ auto premiums for April and May.
Arbella Insurance Group will provide its private passenger auto customers with a 20% discount on their auto premiums for three months, April, May and June 2020. The savings would result in an estimated average of $60 per vehicle, and customers with multiple vehicles on their policy could see more savings. The insurer will not cancel any policies for non-payment from April 1 to June 1, 2020 and will not charge fees for late payments or insufficient funds.
Aspire General Insurance Services is providing a policy credit of 10% to policyholders on auto premiums earned between March 20 and April 30 on policies written prior to March 20. Some policies may qualify for additional credits. The 10% credits will be done automatically, and the insureds do not need to do anything to receive their credits. Additionally, beginning March 20, Aspire had temporarily discontinued charging reinstatement and SR22 fees on all reinstatements and extended the reinstatement eligibility period from 30 to 60 days.
Auto-Owners Insurance will be providing a 15% premium refund to its personal automobile policyholders for the months of April and May.
Chubb is providing its personal auto insurance clients in the U.S. upon renewal with a credit reflecting a 35% premium reduction for the months of April and May, with additional discounts for subsequent months, “as the situation warrants.” The average credit is expected to be $110 per vehicle. Also, Chubb’s U.S. small business clients whose policies renew between April 1 and August 1, 2020 will receive an automatic 25% reduction in the sales and payroll exposures used to calculate their premium as well as a 15% reduction in premiums for their commercial auto insurance.
Cincinnati Financial announced that personal lines auto policyholders of Cincinnati Insurance and Cincinnati Casualty will receive a 15% credit per policy on their April and May premiums. It will also give credits on commercial policies for vehicles not being used when requested. In addition, the insurer is pausing cancellations for personal lines and commercial lines policyholders due to nonpayment of premium and waiving late fees until at least April 30; waiving restrictions on delivery services; providing additional risk management advice to businesses manufacturing of personal protective equipment and waiving vacancy clauses for buildings temporarily closed due to the pandemic.
Concord Group Insurance Companies will return $2.4 million in premium and expand several underwriting guidelines and coverage limits to its more than 150,000 policyholders throughout the four New England states in which the company does business. A 15% refund of April and May premium to the company’s personal auto policyholders will be applied the week of April 20th as a single reduction to the auto policy.
CSAA Insurance Group, an AAA insurer, is providing a 20% premium refunds or credits– totaling approximately $100 million – to auto policyholders. Members with an active policy as of April 30 will receive a 20% refund for two months of auto premiums. CSAA is pausing cancellations for home and auto policies due to non-payment through May 31 and it is extending auto insurance coverage – at no additional cost – for drivers who are using their personal vehicles to deliver food and medicine.
Direct Auto Insurance of Tennessee will give personal auto insurance policyholders a 15% credit on their April premiums. Policyholders do not have to take any action to receive the credit. This credit is in addition to other COVID-19 billing relief efforts currently in place for those who demonstrate financial need and may vary in different states.
Encova Insurance will issue a 15% policy credit to more than 80,000 personal auto policyholders for the months of April and May. The company has also extended grace periods and suspended non-payment cancellations and is providing insured restaurant owners with delivery coverage.
Erie Insurance will file to reduce rates by $200 million total for personal and commercial auto insurance customers in 12 states and the District of Columbia. This is not for short term auto insurance rebates. If approved, premium adjustments will take effect at the time of new policy initiation or renewal, will vary by state and also be based on individually purchased policies and coverages. Erie is also l providing $200 million in dividends directly to personal and commercial auto insurance customers in the 12 states and the District of Columbia where the company does business. This relief represents about 30% of related auto insurance premiums over a two-month period, or 5% of customers’ annual premium. This is in addition to the $200 million in rate reductions. The insurer is further promising individualized payment flexibility and adding gift card reimbursement coverage to home insurance policies. This reimburses customers for remaining balances on gift cards that can no longer be used at independently owned and operated local businesses due to business closures.
Farm Bureau Insurance of Tennessee will issue $30 million in payments to its auto policyholders based on 24% of two months auto premium paid for each vehicle covered.
Farmers Insurance will provide relief to more than 115,000 of its business insurance customers in the restaurant, office, retail and service sectors across the country through a 20 percent monthly credit on their Business Owners Policy for the next two months on their upcoming premium notices. Farmers auto reducing auto insurance premiums by 25% on Farmers branded and 21st Century branded policies. Farmers is also temporarily pausing policy cancellations due to non-payment for business customers through May 1 and allowing extra time for business insurance customers to pay for their policies.
GEICO will give back approximately $2.5 billion in the form of a 15% credit to its auto and motorcycle insurance 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. GEICO expects credits to average about $150 per auto policy and $30 per motorcycle policy. The company estimates the benefit to its 18 million auto and 1 million motorcycle customers will be approximately $2.5 billion. GEICO is also pausing cancellations of coverage due to non-payment and policy expiration through at least April 30.
Germania Insurance will give back nearly $6 million in credits to its personal auto insurance policyholders in Texas. A payment of $25 will be provided for each personal auto policy that was in effect as of March 31, and there will be an additional $25 payment for each personal auto policy that is effective as of April 30.
Go Insurance is reducing premiums for all Louisiana, Nevada and Ohio policyholders by approximately 15% during April and May. This is also new policies or renewals that make a payment between April 1 through April 30 and May 1 through May 31, 2020.
Grange Insurance Co., based in Columbus, Ohio-based Grange Insurance Co.’s Businessowner Policy (BOP) customers will receive a 20% payback for the months of April and May for policies in-force as of March 31, pending regulatory approval. Paybacks will be issued by check and mailed to customers in May. The payments will happen automatically, and customers do not need to do anything to receive the payback. Grange also is providing a 25% premium payback for April and May for personal auto customers related to the various COVID-19 shelter-in-place orders, with an estimated $25 million impact in relief. The company also has established a grace period to pay premiums and is waiving late fees for personal and commercial policyholders directly impacted by the circumstances surrounding COVID-19. Graned is helping commercial restaurant insureds and personal auto policyholders who work in the restaurant industry by temporarily adjusting coverages to provide flexibility for food delivery exposure.
The Hanover Insurance Group is returning 15% of April and May auto premiums to its eligible personal line’s customers. This refund equates to approximately $30 million in premium. The insurers is also offering flexibility on bill payment options ; extending personal auto coverage to individuals doing deliveries at no additional charge; waiving the limit on additional living expenses to homeowners who are forced from their homes following covered losses, such as a fire; and extending the number of days it will reimburse a customer for a rental car if an insured’s vehicle is in the shop and cannot be repaired or returned.
The Hartford is giving its auto insurance customers a 15% credit on their April and May auto insurance premiums. The 15% payback will be given on two months’ worth of premium for all customers with an active auto policy as of April 1, 2020.
Kemper will provide a 15% credit to personal auto policyholders towards their April and May premiums. Kemper’s personal auto customers who have a policy in force as of April 30 will be credited 15% of their April premiums in May, and personal auto customers with a policy in force as of May 31 will be credited 15% of their May premiums in June. The two premium credits will total approximately $100 million.
Liberty Mutual is giving personal auto insurance customers a 15% refund on two months of their annual premium. This returns approximately $250 million to Liberty Mutual and Safeco personal auto insurance customers. This is in addition to flexible payment options and delivery coverage expansion for all personal auto policies in all states for losses occurring from March 16 to May 22 and reported by July 1, 2020.
Main Street America Group will return nearly $27 million in premium relief to its commercial lines and private passenger auto insureds. Commercial insureds with a business owners policy and/or a contractors policy will receive a two-month premium credit equal to 20% of policy premiums due in April and May 2020. This credit applies to policies in force as of March 31, 2020. The company estimates it will credit approximately $10.4 million in premium to customers with these policies. Commercial auto, workers’ compensation, umbrella and other commercial policies are excluded. Main Street America personal auto policyholders will receive a one-time relief payment of $50 per eligible vehicle via check. Main Street America estimates this will mean $16.5 million in relief for personal auto customers. The company is also providing temporary coverage for individuals using personal vehicles to deliver food from local restaurants.
MAPFRE Insurance will return 15% of April and May premium to its personal auto policyholders in Massachusetts, totaling $30 million. On average, most policyholders will receive a credit of approximately $40.00. A similar credit will be provided to the company’s personal auto policyholders in its other 13 states of operation for the same time period.
Mercury Insurance will be giving back 15% of monthly auto insurance premiums to personal auto customers in April and May in the 11 states in which it operates. The refunds will total about $65 million.
MetLife Auto & Home is giving personal auto customers who are paid to date a 15% credit for April and May based on their monthly premium. The company will not cancel policies due to non-payment through July 1, 2020. Many MetLife auto insurance policies already provide coverage for people using their personal vehicles for delivering medicine or food but the insurer is extending this coverage under all personal auto insurance programs at no additional charge through May 1, 2020. It is also extending its existing cyber security services through CyberScout to immediate family members of current customers through August 2020.
Nationwide is giving a one-time premium refund of $50 per policy for personal auto policies active as of March 31, 2020. The refund is equivalent to an average savings of 15 percent for two months. Nationwide has already been extending payment terms and providing coverage for personal lines policyholders conducting a delivery of food or prescriptions.
Next Insurance is cutting April premiums by 25% for its customers with general liability, professional liability and commercial auto policies. This 25% reduction applies to those who pay monthly or paid their full annual premium up front and who purchased coverage before March 1. The insurer recently extended its April 25% premium reduction through May (subject to state approvals).
NJM Insurance Group that offers coverage in Connecticut, New Jersey and Pennsylvania will provide a 15% refund on the equivalent of three months of annual premium for auto policyholders. In total, NJM will return $41.7 million in relief.
North Carolina Farm Bureau Insurance will provide a 20% dividend payment to its automobile policyholders for April and May 2020.
NYCM Insurance in New York is issuing a credit to its approximately 230,000 auto policyholders. All auto policyholders as of April 30, 2020, will receive a 15% credit back from their April and May premiums.
Plymouth Rock will issue a 25% premium credit on liability and personal injury protection coverages on all existing and new auto insurance policies. It will also waive comprehensive and collision deductibles for any health care worker involved in an accident while driving to and from work, or in the line of duty. For its home insurance customers, Plymouth Rock will apply its alternative living expense coverage to any health care worker required by illness or job requirements to stay away from home. Policyholders will have the option to donate their savings to non-profit organizations.
Preferred Mutual Insurance Company has announced its Stay Home, Stay Assured Auto Program, which will provide more than 65,000 customers with a 15% credit on their April and May personal auto insurance premiums. The credit will be given to New York and Massachusetts personal auto policyholders as of April 30, 2020. The company has estimated its Stay Home, Stay Assured Auto Program will distribute $2.5 million back to its customers.
Progressive Insurance is providing approximately $1 billion to its drivers. 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. Commercial lines customers with a business owner or general liability policy will get a 20% credit on April and May monthly premiums. In addition, the insurer is suspending cancellations and non-renewals on personal and commercial lines policies for non-payment through May 15; expanding coverage for personal auto customers temporarily delivering food or medicine and allowing commercial customers additional coverage options for delivery.
Safety Insurance is offering personal auto policyholders that have a policy in effect as of April 1 a 15% credit off their premium for April and May. It is also providing auto coverage for customers now using their personal vehicles for deliveries.
Selective Insurance personal and business auto insurance policies will receive a 15% premium credit for April and May. The company is also providing payment flexibility and delaying policy cancellations, and making mid-policy adjustments to business customers transitioning from brick and mortar operations to a delivery service, using their property differently, or experiencing a reduction in sales revenue.
Shelter Insurance will issue a payment to policyholders representing approximately 30% of their personal auto monthly premium for the months of April and May. It has also eased its rules on lapsed and cancelled policies.
State Farm is returning $2 billion in dividends to auto insurance customers. On average, auto customers can expect to receive a credit of about 25 percent of premium for the time period March 20 through May 31; exact percentages will vary by state.
Thimble, an on-demand general and professional liability insurer, has created a Pause, an option for small businesses and entrepreneurs that may need to take a temporary break from insurance coverage. It is available to all policyholders that have a monthly Thimble policy, introduced earlier this year. Pause is available for up to 30 days and can be initiated at no cost. Policyholders can still be covered for bodily injury or property damage claims that occur during Pause, as long as the occurrence was not a result of work completed during the break period or prior to having insurance with Thimble.
The Travelers Companies is giving personal auto insurance customers a 15% credit on their April and May premiums. It is offering auto coverage for customers now doing deliveries. In addition, Travelers is also providing billing relief to customers and accelerating more than $100 million in commission payments to eligible agents and brokers.
Union Mutual of Vermont announced an automatic 15% credit on all personal auto policies it writes in New England and New York.
Utica National Insurance Group will provide policyholders with a 15% payback of their personal auto insurance premiums for April and May 2020. The company is also temporarily expanding coverage under customers’ personal auto policies to include delivery coverage.
USAA will be returning $520 million to its members. 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. It is also offering special payment arrangements and expanded auto insurance coverage for members using their personal vehicles for deliveries.
Vermont Mutual began mailing letters to its personal auto consumers on May 1 informing them that they qualify for a payback equivalent to 20% of their auto premium for three months. It is also offering an opportunity for those customers to choose to donate their rebate to a number of charities that are helping local communities affected by the COVID-19 pandemic, including Feeding America, Meals on Wheels, The United Way and The Salvation Army.
Westfield personal auto customers will receive a 15% credit of their eligible monthly auto premium for the months of April, May and June 2020. Westfield is returning more than $16 million customers. It is also providing coverage to customers with a personal auto policy with delivery coverage.
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