NEW ORLEANS — If you have auto insurance with a national company you may be seeing a refund of 15 percent of your policies for April and May.
Several companies have made public announcements about the refunds or reductions in premiums while others are saying they are looking at a way to benefit their customers.
Driving around town on any given day you can see that automobile travel is way down. Morning and afternoon rush hours just aren't present and the lack of travel has translated into a lack of accidents and payouts.
Here is a list of the companies and what they are doing as far as refunds go, according to their web sites, unless otherwise noted.
If you have a policy with a national insurer that is not on the list, you may wish to inquire as they may be pressured to follow suit.
‘Shelter in Place Payback’ – On average, we’ll refund 15 percent based on the monthly premiums due in April and May.
Allstate will automatically deposit money back to the bank or credit card account used for payment, or apply credits to accounts, depending on customer preferences. Please check your payment information to make sure it is up to date.
Fewer drivers are on the road, which means fewer accidents. With this in mind, we are announcing our Personal Auto Customer Relief Refund, which will return an estimated $250 million to our personal auto insurance customers. Here’s how it works:
- Personal auto insurance customers will receive a 15% refund on two months of their auto premiums, as of April 7, 2020, pending regulatory approval.
- The refunds will begin in April and will be issued either by check or in the manner you made your most recent payment.
- The payments will happen automatically, and you do not need to call us to receive the refund.
Every member with an auto insurance policy in effect as of March 31, 2020, will receive a 20% credit on two months of premiums in the coming weeks. All told, we're returning about $520 million. You will not need to call or take any other action.
GEICO is providing a 15 percent credit to our 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.
From AARP's web site: Progressive Insurance, with corporate headquarters in Mayfield Village, Ohio, soon may start givebacks.
"We're also exploring how to best return some premium to customers to reflect the decreased exposure that comes with less frequent driving during the pandemic and expect to have those plans in place soon,” company spokesman Jeff Sibel said via email.
From AARP web site:
State Farm, based in Bloomington, Illinois, and the nation's largest auto insurer, is considering how to do a giveback and will decide this week.
"With schools and businesses closed and orders to shelter in our homes proliferating, we know our auto insurance policyholders are driving much less than anticipated,” the insurer said in an emailed statement.
Will give customers a 15 percent credit on their April and May bills.
From the company:
"Baton Rouge-based GoAuto Insurance announced today that all current Louisiana automobile insurance policyholders would see a reduction in monthly premium payments during the current pandemic. The rate decrease, due to a reduced number of cars on roads leading to fewer automobile accidents, will last through May 31 and may be extended if the Shelter in Place order is continued. This announcement affects nearly 82,000 current Louisiana customers for a total reduction in savings of more than $4.2 million."
This action is effective for all active Louisiana GoAuto Insurance policies as of April 1. Current and new policyholders must make a payment between April 1 through April 30, and May 1 through May 31, to receive the discount.