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Companies Offering Car Insurance Refunds, Discounts During Coronavirus - Business Insider
Companies Offering Car Insurance Refunds, Discounts During Coronavirus - Business Insider
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With Americans driving less, having fewer car accidents, and making fewer
claims, car insurance companies are seeing a surge in pro ts.
If your insurer isn't o ering a refund or discount, there are still ways to save,
including asking for a rate reduction or cutting back on unnecessary coverage.
Check out our partner Savvy — a free tool that lets you compare car insurnce
quotes in minutes »
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Car insurers have seen big bene ts from the stay-at-home orders during the
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coronavirus pandemic. With fewer people commuting to and from work, there are
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19/06/2020 Companies offering car insurance refunds, discounts during coronavirus - Business Insider
Some insurers are taking steps to make sure customers aren't overpaying for a
policy they're unable to use. Several large insurers, including Allstate, GEICO, and
Liberty Mutual have announced refund programs for customers.
If your insurer isn't yet on the list, it's still worth getting in contact with your
insurance company. Your insurer may be able to reduce your rate if you're driving
fewer miles. Canceling your policy generally isn't the right move, but you may also
be able to remove certain coverage types you no longer need. Additionally, many
insurers are o ering payment help for anyone who's income has been a ected by
COVID-19.
Allstate, the parent company of online insurer Esurance and agent-sold Encompass,
plans to provide a "shelter-in-place payback" to car insurance customers. For most
customers, the refund will consist of 15% of your monthly premium for both April
and May. The company stated in a press release that customers will automatically
have this amount refunded to their bank account or credit card, or as a credit
towards future payments.
According to data gathered by S&P Global Market Intelligence, the amount returned
will vary by state, since insurance prices often vary by state. In California, S&P
predicts an average payment of $30.66 per policy per month. In states where
insurance is cheaper and payments are lower, people can expect to see lower
payments. Alabama residents, for example, will see an average payment of about
$26.
Only
HO customers
M E PA G Ewho have made at least one payment on their policy will be eligible.
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19/06/2020 Companies offering car insurance refunds, discounts during coronavirus - Business Insider
This Wisconsin-based insurer does most of its business in the Midwest. Car
insurance customers will receive a one-time, $50 payment for each car insured.
American Family says checks will be issued by mail to the policyholder's address.
Checks will be sent as the company receives regulatory approval from individual
states.
Farmers and 21st Century Insurance will provide a 25% refund on April premiums
for car insurance. The company says that it will continue to monitor the situation
and could make other adjustments to premiums. Farmers encourages customers to
get in touch with insurance agent to save more.
GEICO
Warren Bu et-owned GEICO has announced plans for a "GEICO Giveback Credit."
Instead of a reimbursement, GEICO will take 15% o of renewed or new policies
between April 8 and October 7, 2020. The credit will apply for both auto and
motorcycle policies.
GEICO estimates that its average 6-month policy costs about $1,000, and that on
average, customers can expect to save about $150 when their policy comes up for
renewal. Customers both new and existing will see the discount re ected on their
next policy.
Boston-based insurer Liberty Mutual will also be issuing 15% refunds on its auto
insurance policies. Liberty Mutual will issue 15% refund on both April and May's
monthly
HOME payments.
PA G E Liberty Mutual anticipates that this refund program will Subscribe
return
over $25o million to customers. Subscribe
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19/06/2020 Companies offering car insurance refunds, discounts during coronavirus - Business Insider
The refunds don't require any action, and will be automatically sent either by check
or by your last payment issue after regulatory approval.
Mercury Insurance
Progressive
Progressive will give customers a 20% refund in the form of a credit to their
accounts for both April and May. People who have paid in full will receive a refund
to the payment form linked to their account. The credit or refund will be
automatically sent or applied to your account. Additionally, Progressive says that
there may be an opportunity to o er credits for future months as the situation
progresses.
State Farm
State Farm will issue refunds in the form of credits to customers. On average,
customers will receive a refund of 25% of their monthly premiums for the period
between March 20 through May 31, 2020.
The actual percentage that customers will see returned will vary by state. The
company anticipates this working out to about $20 per month, per vehicle.
However, the refund will not be issued until June. Customers with several types of
State Farm's coverage will be able to get refunds, including motorcycle, RV, and
classic car insurance customers.
Travelers
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Travelers also announced on April 8 that it would be crediting personal car Subscribe
USAA
In a press release, USAA stated that policies must have been in place on March 31,
2020 to qualify, and that customers don't need to do anything to receive the refund.
The company estimates that about $520 million will be returned to customers.
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