Car Insurance Discounts During Coronavirus Outbreak
Many people around their country have had their cars parked for weeks now. With many working from home and self isolating, traffic is way down. Some data from auto insurance companies shows that people are driving 35-40% less in the last few weeks. Besides there being no traffic jams, it also means less accidents. And less claims for auto insurance companies means more savings for them. Now some companies are passing those savings to policy holders, or at least part of the savings.
I’ll list here some of the auto insurance companies that have announced refunds for customers, or some other kind of relief such as suspending fees and cancellations. But it is always worth calling others as well and see if they can offer any kind of discount during these tough times.
- AAA members who insure their vehicles through the Interinsurance Exchange of the Automobile Club and its affiliate insurers (Auto Club Enterprises Insurance Group) will receive premium refunds totaling approximately $125 million. Every policyholder with auto insurance in effect from March 16, 2020 to May 15, 2020 will receive a 20% policy refund check for this period. We expect to mail refund checks by the end of May. Members do not need to take any action to receive their refund.
- Allstate will refund about 15% of premiums paid by its customers in April and May. That should be a total of about $600 million for customers. The refunds will go to customers with personal auto insurance only, regardless if their state has any kind of stay-at-home order. (HT: MtM)
- American Family will send refunds to all customers. Policy holders will receive $50 per car via a one-time payment. American Family expects to pay out about $200 million.
- Esurance – Backed by Allstate, so it will refund about 15% of premiums paid by its customers in April and May.
- Geico is providing a 15% credit to auto and motorcycle policyholders as your policy comes up for renewal between April 8 and October 7, 2020. The credit will also apply to any new policies purchased during this period. The credit is part of our ongoing efforts to assist policyholders during this unprecedented time. (I called them already before this was announced. If you are working from home, you can call and tell them to lower the estimate of the number of miles that you are driving every month and you should get some kind of discount. I received only about 9-10% off my monthly bill for the next three months. Not sure if you get both discounts now. HT: DoC)
- Liberty Mutual will return an estimated $250 million to our personal auto insurance customers. The company said it would give customers a 15% refund on two months of their annual premium, pending regulatory approval.
- NYCM has stopped any notice of cancellation for non-payment of premium and will continue to do so until further notice. You will continue to receive your billing installment; however your coverage will not be interrupted due to non-payment. They say they are prepared to accommodate your needs with flexible payment arrangements once normal billing procedures resume.
- Progressive will provide approximately $1 billion in rebates to drivers because of fewer claims. The company said personal auto policy customers can potentially receive a 20% credit in April and May. They will calculate your credit at the end of each month, and then you’ll see it reflected in your account within a few weeks. Starting April 1, 2020, they’ll also waive late fees, pause collections, and hold off on canceling or non-renewing any active policies due to non-payment through May 15, 2020.
- Safeco – Part of Liberty Mutual Insurance, so 15% refund on two months of annual premium for personal auto insurance policies nationwide.
- State Farm has launched a new relief program which will benefit about 21 million households. The “Good Neighbor Relief Program” offers a 25% policy credit on premiums due from March 20 through May 31, or about $20 a month for each vehicle insured. The average annual State Farm auto premium is about $950 a year, the insurer said.
- Travelers says it will suspend cancellation and nonrenewal of coverage due to nonpayment through May 15, 2020. They will not charge interest, late fees or penalties during this period. If you are unable to make payments, please contact them for possible solutions.
- USAA says it won’t cancel your policy or charge you fees if you make late payments on your USAA Auto and Property Insurance coverage through June 17, 2020. Special payment arrangements are available to assist members experiencing financial difficulties. So make sure to call and see if they can offer some kind of discount.
Other insurance companies are surely seeing similar drops in the number of claims. Hopefully they decide to offer automatic refunds to customers as well. Let me know if you know of any other companies that are doing this, or if you have had any success by just calling and asking for a discount yourself.