Auto Insurers Issuing $10.5B in Coronavirus Refunds

With highways and roads abandoned as motorists stay home during the COVID-19 health crisis, the nation’s biggest auto insurers are offering policyholders $10.5 billion in credits and reduced premiums, according to the Insurance Information Institute.

Source: Hartford Courant | Published on April 13, 2020

Fewer cars on the road typically means fewer accident claims. According to Arity, a data and analytics firm owned by Allstate, the total number of miles driven nationwide since March 8 is down by more than half.

Here is what auto insurers said they are offering:

  • State Farm, mutual insurer owned by its policyholders, will give customers a $2 billion rebate. Most policyholders will get a 25% credit for the weeks between March 30 and May 31, the Bloomington-based insurer said. State Farm said the percentage awarded will vary by state.
  • Geico will give back about $2.5 billion to its auto and motorcycle customers. The company will issue a 15% credit as those policies come up for renewal between April 8 and Oct. 7. The credit also applies to new policies purchased with Geico during that time period.
  • Progressive Insurance will offer its personal auto policyholders a 20% credit for their April and May premiums, totaling about $1 billion. Customers can expect those credits to be automatically applied to their accounts in May and June.
  • Allstate will return about $600 million to its customers, which most policyholders will get back in the form of a roughly 15% credit on their premiums in April and May. Customers will receive the rebate through a credit to their bank account, credit card or on their Allstate account.
  • USAA a member-owned association will return $520 million to its members. Policyholders will receive a 20% credit on two months of premiums.
  • Liberty Mutual will return about $250 million to personal auto insurance customers in the form of a 15% refund on two months of their annual premiums. The refunds will begin in April.
  • American Family Insurance will return about $200 million to policyholders. The insurer will return $50 for each vehicle insured.
  • The Hartford, which has an exclusive agreement with AARP to sell auto and home insurance products to its members, will give back about $50 million to auto customers in the next couple of months. Most customers will receive a 15% refund on their April and May premiums.
  • Farmers Insurance and its 21st Century Insurance said customers will receive a 25% reduction in April premiums.
  • Nationwide will offer a one-time premium refund of $50 for each insured vehicle. Customers will receive a refund in the next 30 days to their most recent method of payment.
  • Travelers will give its auto insurance customers a 15% credit on their April and may premiums.
  • The Hanover Insurance Group will return 15% of April and May auto premiums to customers, totaling about $30 million in refunds.
  • MetLife will give its customers a 15% credit for April and May premiums.