Factbox: Insurers return part of auto premiums as coronavirus cuts driving
(Reuters) – Major U.S. insurers are offering credit to auto and motorcycle policyholders following a decline in driving, as most Americans stay at home to help contain the spread of the novel coronavirus.
Following is a list of companies, in alphabetical order, which have offered to return premiums.
ALLSTATE CORP (N:)
Allstate, one of the largest U.S. auto insurers, said on Monday it would return more than $600 million in premiums to customers.
Most customers will receive a “payback” of 15% of their monthly premium in April and May, the company said.
AMERICAN FAMILY INSURANCE
The auto insurer said it would return a total of $200 million to auto insurance customers beginning mid-April. Customers will receive $50 per vehicle covered by their policies, the Madison, Wisconsin-based company said.
Geico Corp, part of billionaire Warren Buffett’s Berkshire Hathaway Inc (N:), said it will offer about $2.5 billion of credits to its 19 million auto and motorcycle policyholders.
The insurer said it will offer a 15% credit on policies up for renewal between April 8 and Oct. 7, averaging about $150 per auto policy and $30 per motorcycle policy.
PROGRESSIVE INSURANCE CORP (N:)
Among the largest U.S. auto insurers, Progressive said it was exploring how to best return some auto insurance premium to customers because of drop in driving during coronavirus pandemic and it expects to have some plans in place soon.
State Farm is considering how best to take the drop in driving into account and return value to its auto insurance policyholders.
TRAVELERS COMPANIES INC (N:)
The insurer said http://investor.travelers.com/file/Index?KeyFile=403557655 on Wednesday it was giving U.S. personal auto insurance customers a 15% credit on their April and May premiums through its new stay-at-home auto premium credit program.
Travelers also said it will continue to provide auto coverage to customers whose jobs include using their personal vehicles to make food, grocery, pharmacy and medical supply deliveries.
USAA, America’s fifth largest property-casualty insurer, said https://communities.usaa.com/t5/Press-Releases/USAA-to-Return-520-Million-to-Members/ba-p/228150?_ga=2.187435180.560197422.1586371936-1373359291.1584544071&_gac=1.171240852.1584714282.EAIaIQobChMI_ZON3aCp6AIVBOiGCh2TCwQCEAAYASAAEgKUj_D_BwE it will return $520 million to its members.
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.
Source: Company data
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Source : Reuters Link