Car insurance companies have benefited from the government stimulus package, but are required to pass some of the savings back to it’s customers. This is why most people can expect a partial car insurance refund or credit.
Also, most companies are not cancelling coverage for non-payment or insurance premiums during the pandemic. Depending on the company, they will have customers make up payments at a later date, in various was.
Also, most companies are not cancelling anyone that is running behind on their premiums and are working out payment plans for a later date. Be proactive and reach out in advance to avoid any possible issues.
Here is what we know regarding car insurance refunds.
AARP/Hartford
For those that had a policy as of April 1, 2020, customers will be refunded 15% of both their April & May premiums. They estimate it will be around $33 per vehicle on average. The payment will be credited within 2 months with the same payment method used by the customer to pay their premiums.
Allstate
Allstate, Esurance, Castle Key & Encompass who are all part of the Allstate family, are refunding $600 million in premium to customers in April & May. Customers will receive 15% back on 2 months worth of coverage under it’s “Shelter in Place Payback.” The payment will go back to the bank account or credit card you used to pay the policy or if you paid by check, then you will receive a credit on your account for the next time you are up for renewal. Allstate stated that customers can get their refunds faster via the Allstate app. During the COVID-19 emergency period, Allstate is automatically covering customers who use their personal vehicles to deliver food, medicine and other goods for a commercial purpose.
GEICO
Those that renew their policies with GEICO between now and October 7, 2020, will automatically receive a 15% credit. With an average policy costing around $1,000 for 6 months, this would mean the average benefit would be around $150 per policy. That adds up to about $2.5 billion in credits for the 19 million or so policyholders affected.
Liberty Mutual
Liberty Mutual and its sister company, Safeco, announced customers would be refunded up to 15% of their premiums for two months. Premiums tend to be a bit higher than some other companies, so the average credit is expected to be between $75 and $85. Both companies have suspended coverage cancellations.
Progressive
Progressive is offering customers 20% credit on premiums for April & May. This could average $85 to $95 per policy. They are also not cancelling active policies due to non-payment through May 15th.
State Farm
Under their Good Neighbor Relief Program, State Farm will pay out around $2 billion dollars to customers which is around 20 to 25% of premium costs between March 20th and May 31st. Credits will be applied against bills beginning in June. With 40 million vehicles insured, that amounts to an average of about $50 per car.
USAA
The military insurance provider announce that those who were enrolled prior to March 31, 2020 would receive 20% on two months worth of premiums. Since they are known for lower premiums for those in the military, the savings will likely be around $30 per car. Late fees & cancellations have currently been suspended.
Other companies also offering refunds or discounts on future polices include:
- Nationwide & American Family Insurance (the companies are not associated with one another,) are both paying customers $50 per covered vehicle.
- Travelers Insurance – 15% credit on April & May premiums
- Metlife – future credit of 15%
- Farmers Insurance – cutting April premiums by 25%
- Amica – 20% back on April & May premiums
- Country Companies – 15% of premiums for April & May
- Shelter Insurance – 30% of April & May premiums
If your insurance company is not listed here, make sure reach out and see if they are offering anything to policy holders.
