Car insurance companies are rolling out financial relief measures in the wake of the Covid-19 pandemic. Because people are driving less, there are fewer accidents and claims, resulting in savings for auto insurers. At the same time, many people are reeling from the economic impact of the coronavirus. To help, many carriers are giving refunds and credits to their policyholders.
A survey of 1,000 people by CarInsurance.com shows that 8% of people are having difficulty paying their car insurance bills due to financial repercussions from the coronavirus. Five percent say they plan to switch car insurance companies because their existing carrier is not providing economic relief on premiums due to the pandemic.
Of those having trouble making auto insurance payments:
- 40% live in the South
- 25% are in in the 45-54 age group, with the next largest age bracket 35-44 (19%), so mid-career Americans appear to be having the most difficult time (44% of respondents in total)
- A higher proportion of respondents who say they are experiencing difficulty making payments are female; about 16% more women than men
While most respondents say COVID-19 won’t impact their insurance purchase decisions, those who are likely to make a change as a result of their current carrier’s practices are:
- Men (61%)
- Middle-aged, 45 to 54 (35%), age 35 to 45 (19%)
- Live in the South (40%)
Here we’ll explain what auto insurers are doing to help their policyholders during coronavirus social-distancing. The amount and time frames for credits and refunds vary by insurance company, so you can use our tool below to find specifics for your insurer. Generally, though, carriers are offering financial assistance by doing one of the following:
- Providing credits on April and May premiums, typically from 15% to 20%
- Providing a credit on just April premiums of 25%
- Issuing one-time refund checks of $50 per vehicle insured
Nearly all insurance companies are waiving late-payment fees and pausing cancellations of policies for at least several weeks.
When can you Expect to see Refunds or Credits from Auto Insurers?
Most consumers can expect to see refunds arriving from late April/early May to June, depending on their insurer.
Those who are receiving a one-time check will likely see refunds by the end of April, while those receiving credits toward April and May policies will see credits in May and June.
Some insurance companies are sending a one-time check, so simply are waiting for state regulators to sign-off, and then can mail checks, in which case they could arrive before the end of April.
One example is Nationwide, which is offering a one-time premium refund of $50 per policy for personal auto policies active as of March 31, 2020. Nationwide said on April 9, that the refund will arrive “in the next 30 days, subject to individual state regulatory approval.” Another example is American Family, which is issuing a one-time payment of $50 per vehicle to those with policies in effect by March 11.
Others, when announcing relief measures, have said credits would arrive “in coming weeks,” or “within 30 days” so customers of these carriers could see refunds by early May.
Still, many others are applying the credit to April and May policies, so, for instance, the insurer will credit April in-force policies in May, and May in-force policies in June. As of late May, a handful of auto insurance providers, including Allstate and USAA, have decided to extended their refunds or credits for a third month.
What are other Ways you can Save Money on Auto Insurance Right Now?
Comparison shop: If you’re home with time on your hands and up-to-date on your payments, shop around for auto insurance. Each insurance company uses its own formula for assessing risk, so the price of a policy will vary significantly among insurance companies. As long as you’re not behind in your payments, you should be able to shop around and could possibly save hundreds of dollars by finding a company offering better rates for your specific set of rating factors.
However, if you’re waiting for a refund, you may want to hold off on switching until that comes through.
Review your coverage levels: This is also a good time to see if the coverages and deductibles (that come with comprehensive and collision coverage) are still right for your needs. If you have a policy with comprehensive and collision coverage, you can hike your deductible amount, which will lower your rates.
Or, if you have a policy with liability, comprehensive and collision on an old car that’s not worth much, you could drop the optional comprehensive and collision coverages altogether.
Review your discounts: Make sure you are getting all of the discounts for which you qualify. For instance, bundling your home and auto insurance with the same company will reduce your rates.
If you’re Facing Trouble with Paying Premiums, what should you do?
Nearly all of the major insurance companies have announced that they are pausing policy cancellations due to non-payment and waiving late payment fees for at least the next several weeks, time-frames vary, but typically until mid-May. So there is some breathing room. However, those having financial hardships may still find it challenging to keep pace with payments over the long run. If that’s the case, you should contact your insurance company to work out a plan. In the past month, insurance companies have added COVID-19 sections to their websites, which provide contact information policyholders can use to reach out to their insurer to discuss payment plans. They are listed in the tool below on this page.
I’m not Driving One of my Cars at all, should I Cancel Coverage to Save Money?
Don’t cancel coverage on a car you are now not driving. It may be tempting to cancel coverage to save money, but likely it will be more trouble than it’s worth. First, you’re losing out on the multiple- car discount, so the cost to insure the one car will increase from its normal rate. Also, you’ll then need to follow state laws regarding what to do with the registration and plates of the uninsured car. Finally, when you circle back to insure the second car again, it will be at a higher rate due to the lapse in coverage. Instead, you should contact your insurer about what they can do to financially assist you if you can’t afford insurance on both vehicles.
How do these Refunds and Credits Work for Customers who’ve Prepaid 6 Months or more Ahead?
In most cases, policyholders who have pre-paid premiums will receive credits in each of the same months that the credits are being applied for drivers who pay monthly.
Here’s how car insurance companies are reacting to the coronavirus.
Impact of Coronavirus on Your Car Insurance Policy
Select your insurance company to know about the payback credits, grace periods, waivers and more.- Allstate policyholders will receive 15% of their monthly premium for April in May as a credit, and is allowing customers to delay two consecutive premium payments without penalty. UPDATE: The 15% payback will extend through June.
- In addition to the Shelter-in-Place Payback, Allstate is offering free identity protection, payment relief and extended coverage. Allstate, Esurance and Encompass auto customers are all eligible for the payback credit.
- Source & Info on COVID-19 at Company&aposs Website
- American Family Insurance is providing a one-time $50.00 payment for each personal automobile insured with through its premium relief payment.
- If you’ve been financially impacted by the COVID-19 outbreak, and have questions about late payments, fees, cancellations, non-renewals or any other concern, discuss your options by calling 1-800-MYAMFAM (1-800-692-6326).
- Source & Info on COVID-19 at Company&aposs Website
- Personal auto insurance customers will receive a 15% refund on two months of their auto premiums, as of April 7, 2020.
- Liberty Mutual has automatically stopped charging late fees and have temporarily paused personal auto & home coverage cancellations due to non-payment from March 23 through May 22, 2020, or later as directed by your state.
- Source & Info on COVID-19 at Company&aposs Website
- Geico is providing a 15% credit to auto and motorcycle policyholders as policies come up for renewal between April 8 and October 7, 2020. The credit will also apply to any new policies purchased during this period. UPDATE: Geico updated credit so it will be based on entire 6-month policy and says will average to be $150.
- Geico is pausing cancellation of coverage due to non-payment and policy expiration through at least April 30, 2020 or later as directed by your state. This pause is automatic for policyholders.
- Source & Info on COVID-19 at Company&aposs Website
- U.S. personal auto insurance customers get a 15% credit on their April and May premiums.
- Providing billing relief for all U.S. customers, including suspending cancellation and nonrenewal of coverage due to nonpayment through May 15, 2020 (no interest, late fees or penalties will be charged).
- Source & Info on COVID-19 at Company&aposs Website
- If you have an active personal auto policy at the end of April, you’ll receive a credit for 20% of your April premium. We’ll offer the same 20% credit to active personal auto customers at the end of May.
- Starting April 1, 2020, we’ll waive late fees, pause collections, and hold off on canceling or non-renewing any active policies due to non-payment through May 15, 2020.
- Source & Info on COVID-19 at Company&aposs Website
- Erie Insurance Announces $200 Million in Personal and Commercial Auto Rate Cuts to Provide Financial Relief to Customers. The relief to policyholders will be seen a dividend that equates to about 30% of your monthly auto insurance premium for a two-month period or about 5% of your annual premium.
- Erie says to calculate your dividend take your annual premium as of April 1, multiply it by .30 and divide by 6. Also, for a limited time, Erie Family Life is offering applicants a path to life insurance coverage without the requirement of a paramedical exam.
- Source & Info on COVID-19 at Company&aposs Website
- 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.
- Customers facing financial hardships should call their State Farm agent to discuss assistance options. State Farm announced at end of May it would cut car insurance rages by an average of 11% nationwide later this summer.
- Source & Info on COVID-19 at Company&aposs Website
- 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. UPDATE: Credit extended to three months.
- USAA will not cancel members’ auto or property insurance policies or charge fees due to late payments on USAA auto and property insurance coverage through June 17, 2020
- Expanded auto insurance coverage for members who use their personal vehicles to deliver food, medicine and other goods for commercial purposes.
- Source & Info on COVID-19 at Company&aposs Website
- Personal auto insurance customers will receive a 15% refund on two months of their auto premium, based on thier premium amount as of April 7, 2020.
- Safeco has automatically stopped charging late fees and have temporarily paused personal auto & home coverage cancellations due to non-payment from March 23 through May 22, 2020
- Source & Info on COVID-19 at Company&aposs Website
- Nationwide is offering a one-time premium refund of $50 per policy for personal auto policies active as of March 31, 2020. The refund will arrive in the next 30 days.
- Nationwide will suspend the cancellation of some policies, defer payment deadlines, and waive some late fees. Home and auto customers can contact call 877-669-6877.
- Source & Info on COVID-19 at Company&aposs Website
- Farmers is reducing April premiums by 25%. UPDATE: Farmers reduced May premiums by 15%. New York is the exception where drivers received a single credit of 40% of one month&aposs premium.
- Farmers is temporarily pausing policy cancellations due to non-payment, from now through May 1, 2020.This means you will have until at least May 1 to make a mid-term payment, if one is due, and any unpaid balance will carry over to your next billing statement with no late fee or other penalty.
- If you receive a notice that your policy is expiring and you need additional time to pay, please contact the company and it will extend your due date until at least May 1 and waive any late fees. To make such a request, call 1-888-327-6335
- Source & Info on COVID-19 at Company&aposs Website
- The Hartford&aposs auto insurance customers get a 15% credit on their April and May auto insurance premiums.
- The Hartford will waive late-payment fees and cancellations for non-payment until May 31 for auto and home policies.
- Source & Info on COVID-19 at Company&aposs Website
- Mercury is giving a 15% credit on April and May insurance premiums.
- Call 1-800-503-3724, if you have any questions regarding billing or cancellations.
- Source & Info on COVID-19 at Company&aposs Website
- MetLife Auto & Home is halting cancellations of auto policies due to nonpayment through July 1. Auto customers who are paid to date will receive a 15% credit for April and May based on their monthly premiums.
- MetLife Auto & Home, which already provides coverage for customers using personal vehicles to deliver medicine or food, is extending coverage under all of its personal auto insurance programs at no additional cost as customers make deliveries during the pandemic. The additional protection will be in place from March 20 to May 1.
- Source & Info on COVID-19 at Company&aposs Website
- If you have an active policy as of April 30, you will receive a 20% refund for two months of auto premiums, expected to arrive by May 31.
- Auto insurance coverage extended at no additional cost for drivers who are using their personal vehicles to deliver food and medicine. This change is currently scheduled to be in effect through May 4. Pausing cancellations for home and auto policies due to non-payment through May 31. Offering flexible payment options.
- Source & Info on COVID-19 at Company&aposs Website
- Those with policies in effect by April 1, 2020, will receive a 20% credit on their auto premiums for April and May.
- Offering a penalty-free grace period, effective immediately, through Tuesday, June 2, 2020. During this time, there will be no policy cancelations for an unpaid premiums or late fees charged.
- Source & Info on COVID-19 at Company&aposs Website
- Providing up to a 15% refund in April and May for personal auto policyholders whose bodily injury liability coverage was in force as of March 31.
- The refund is automatic; no action is needed by policyholders. The refund will apply to any outstanding balance on the bill and if there is a remainder it will be returned via check or the automatic payment method.
- Source & Info on COVID-19 at Company&aposs Website
- Hanover will return 15% of April and May auto premiums and will credit April in-force policies in May, and May in-force policies in June. Policyholders who have pre-paid premiums will receive credits in each of the same months.
- There is a 60-day hold on all cancellations for non-payment for all customers through 6/1/2020 unless a later date is required by a specific state. Policies won&apost be canceled for non-payment and late fees will not be assessed. While each claim will be evaluated on a case-by-case basis, if a loss occurs before June 1, 2020, while a listed driver is delivering food, medicine or other essential goods for their employer, The Hanover will not deny the claim on the basis of the use of the vehicle for this purpose.
- Source & Info on COVID-19 at Company&aposs Website
- Kemper’s personal auto customers who have a policy in force as of April 30 will be credited 15% of their April premiums in May and customers with a policy in force as of May 31 will be credited 15% of their May premiums in June.
- If you have already paid your policy in full, you will receive a refund of the credited amounts.
- Source & Info on COVID-19 at Company&aposs Website
- Will refund 15% of three months of premium payments to personal auto insurance customers with coverage in place by April 1. Policyholders will receive their refunds via check or direct deposit depending on their last payment method.
- Source & Info on COVID-19 at Company&aposs Website
- A 25% premium credit on Liability and Personal Injury Protection Coverages will be provided until your state&aposs stay-at-home orders are lifted. An automatic credit will be applied to affected customers’ policies.
- Payment flexibility, including waiving of late fees and a 60-day grace period (longer in some states), holds on cancellations and non-renewals for non-payment, per state guidelines. Any health care worker who is an auto insurance customer and is involved in an accident while driving to or from work, or in the line of duty, will not have to pay their comprehensive and collision deductible. The donation option to “pay it forward," which gives anyone who wishes the ability to donate their personal auto insurance premium credit to a non-profit that is providing relief for those hit hardest by COVID-19. A list of charities will be made available in the coming days.
- Source & Info on COVID-19 at Company&aposs Website
- Upon renewal, you will receive a credit reflecting a 35% premium reduction for the months of April and May, with additional discounts for subsequent months, as the situation warrants. Across Chubb&aposs portfolio, the average credit is expected to be $110 per vehicle, according to Chubb.
- Any agent or client who would like to discuss the extension of a payment due date should contact the Chubb Customer Care Team at 866-324-8222, or customercare@chubb.com .
- Source & Info on COVID-19 at Company&aposs Website
- Arbella insurance group is providing its private passenger auto insurance customers with a 20% discount on April, May and June premiums. If paid in full should receive a check within 60 days instead of a credit.
- Savings are estimated to average $60 per vehicle, so those with more vehicles will see more savings. Will not cancel any policies for non-payment from April 1 to June 1, 2020, and also is not assessing fees for late-payments or insufficient funds.
- Source & Info on COVID-19 at Company&aposs Website
- Personal auto insurance policyholders to receive 15% credit per policy on April and May premiums.
- Other actions taken include: Pausing cancellation due to nonpayment, waiving of late fees until at least April 30 and waiving restrictions on policyholders performing delivery services for the wellbeing of your communities.
- Source & Info on COVID-19 at Company&aposs Website
- Electric Insurance Company is returning 15% of three months premiums to personal auto policyholders.
- Other actions taken include: Pausing cancellation due to nonpayment, waiving of late fees until at least April 30 and waiving restrictions on policyholders performing delivery services for the wellbeing of your communities.
- Source & Info on COVID-19 at Company&aposs Website
- Ohio based insurer is issuing a 15% policy credit to over 80,000 private personal auto policyholders for April and May.
- Also offering extended grace periods, pausing cancellations for non-payment and providing insured restaurant owners with delivery coverage.
- Source & Info on COVID-19 at Company&aposs Website
- Texas-based Germania Insurance is offering a payment of $25 for each personal auto policy in effect as of March 31 and then another $25 for policies in effect as of April 30.
- Policyholders will receive a credit, or if paid in full should receive a refund check in the mail.
- Source & Info on COVID-19 at Company&aposs Website
- Grange Insurance will return to personal auto policyholders a 25% credit for April and May premiums.
- Grange Insurance offers coverage in 13 states and the total credit impact will be up to $25 million. They are also offering grace periods and adjusting coverages for restaurant employees who are using their personal vehicles for deliveries.
- Source & Info on COVID-19 at Company&aposs Website
- Stay at home relief from MAPFRE is a 15% return on April and May premium to personal auto policyholders.
- Comes out by an average of $40 credit that will be applied within the next 60 days. If paid in full will receive a refund instead of credit within this time period. Also, extending coverage for those using a personal vehicle to make food, grocery, pharmacy and medical supply deliveries for no additional charge. Flexible payment options are available for those who need special payment options.
- Source & Info on COVID-19 at Company&aposs Website
- PEMCO policyholders will automatically receive a 15% credit on their monthly premiums for April, May and June.
- Customer service has been helping with financial crisis tailored flexible payment arrangements to fit individual situations. PEMCO has also temporarily suspended cancelations and extended coverage for driving for delivers on just things as restaurant takeout, groceries, prescriptions, and packages.
- Source & Info on COVID-19 at Company&aposs Website
- Personal and business auto insurance policyholders with a policy in force as of April 20and May 31 will receive a credit of 15% of their monthly premiums for April and May.
- If need help with payments, Selective can suspend a policy cancelation, late pay notice, or reinstatement fee for the longer of 30 days or the period your state insurance department advises.
- Source & Info on COVID-19 at Company&aposs Website
- Shelter wil pay their auto policyholders approximately 50% of their monthly premium for their personal autos for April and May.
- Shelter has temporarily suspended non-renewals and cancellations.
- Source & Info on COVID-19 at Company&aposs Website
- Every policyholder with auto insurance in effect from March 16 to May 15 will receive a 20% policy refund check for this period. Checks are expected to be mailed by the end of May.
- Another way of helping, they are offering free Roadside Assistance services to medical personnel and front-line responders. This includes vehicle breakdown, battery problems or flat tires.
- Source & Info on COVID-19 at Company&aposs Website
- Refund check that is 24% of two months premiums cost, for each vehicle, to arrive in May.
- The payment program is funded by Farm Bureau Insurance reserve funds, set aside to protect policyholders in catastrophes. Headquartered in Columbia, Tennessee, Farm Bureau Insurance of Tennessee is a single-state company.
- Source & Info on COVID-19 at Company&aposs Website
- American National insurance is providing personal auto policyholders a 15% credit on premiums for April and May.
- The credits will issue by mid-June and policyholders do not need to do anything to receive the credit other than having a current policy in place. If you&aposve already paid the amount, a refund will be issued. If you owe more than the credit then an adjustment will be made to the total due. Or, if you&aposre on automatic payments, the credit will be applied to your remaining payments.
- Source & Info on COVID-19 at Company&aposs Website
- Branch is giving back 15% of monthly insurance premiums to auto policyholders. The credit applies to auto policies in effect during April and May.
- The credit comes with a unique option of policyholders to receive the credit themselves or help someone that is struggling financially through their entity SafetyNest.
- Source & Info on COVID-19 at Company&aposs Website
- Every policyholder with auto insurance in effect as of April 30 will receive a 20% policy refund applied to April and May&aposs premium.
- The refund reflects current and anticipated reductiosn in miles driven. Policyholders do not need to take an action to receive their refund and should expect to get it by May 31. They also have flexible payment options in place and have paused cancellations for auto policies due to nonpayment through May 31.
- Source & Info on COVID-19 at Company&aposs Website
- Those with an active personal auto policy with Country Financial as of April 1 are eligible for a 15% refund for two months of premiums.
- This refund covers any vehicle, including motorcycles and trailers that are insured under a personal auto policy. Policyholders do not need to do anything to receive the refund and the checks should start mailing in May.
- Source & Info on COVID-19 at Company&aposs Website
- All auto policyholders will receive a 15% credit back from their April and May premiums.
- NYCM has also stopped any notice of cancellation for non-payment and will continue to do so until further notice. They are also providing alternative payment options for those going through financial hardships at this time.
- Source & Info on COVID-19 at Company&aposs Website
- Farm Bureau Insurance is providing a 15% credit to be applied to two months of personal auto premiums paid for each vehicle covered.
- The relief credit will be applied to each customer&aposs next invoice once the program starts. Policyholders do not need to do anything to receive the special credit.
- Source & Info on COVID-19 at Company&aposs Website
- West Bend will send a one-time payment of $50 to their Home and Highway policyholders (those who bundled home and auto policies).
- The payments will be for those whose vehicles were insured as of March 11 (the date WHO declared COVID-19 a pandemic). West Bend is also extending due dates and automatically provides coverage on personal vehicles used by employees of restaurants that now offer delivery services.
- Source & Info on COVID-19 at Company&aposs Website
- Westfield is offering personal auto customers a 15% credit of their eligible monthly premium for April, May & June. Those with an active policy as of April 30 will receive the full credit to their account in the month of May.
- Westfield is also providing flexible billing solutions to help customers who are facing financial hardships. Thy are also extending coverage to personal auto customers who are engaged in delivering essential goods, such as food delivery. They are waiving the limit for rental reimbursement to those who have an insured vehicle in for covered auto repairs and repairs are delayed due to COVID-19.
- Source & Info on COVID-19 at Company&aposs Website
- Personal auto policyholders receive a 15% credit for the months of April and May. Credits will be automatically applied.
- To be eligible you must have been a policyholder on April 1 and have made at least one payment on your policy and maintained continuous cover.
- Source & Info on COVID-19 at Company&aposs Website
- No results found
Allstate Corp declared that it will pay out more than $600 million to auto insurance customers over the next two months as part of its Shelter-in-Place Payback plan. Most customers will receive 15% of their monthly premium for April in May as a credit in their bank account or on their credit card or on their Allstate account.
As Allstate Chief Executive Officer Tom Wilson said in a statement, “This is fair because less driving means fewer accidents.”
Allstate will also let customers delay two consecutive premium payments without penalty. You need to request that payment plan.
If you have insurance with AFI, you’ll soon receive a $50 check, per car insured.
It, too, will apparently be supportive if you’re struggling to pay a bill. On the website, it says: “If you’ve been financially impacted by the COVID-19 outbreak, and have questions about late payments, fees, cancellations, non-renewals or any other concern, we encourage you to reach out to discuss your options by calling 1-800-MYAMFAM (1-800-692-6326).”
Credits are also on tap for Liberty Mutual policyholders. 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.
- 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.
Its website, like many insurers, has information on how the company is managing COVID-19. It reads, in part: “For auto and home insurance customers who are negatively impacted by coronavirus, we are extending payment dates and waiving fees. Please contact us if we can be of assistance.”
GEICO is providing a 15% credit to auto and motorcycle policyholders as policies come up for renewal between April 8 and Oct. 7, 2020. The credit will also apply to any new policies purchased during this period. Geico estimates the average savings to be about $150 per car insurance policy, and $30 per each motorcycle policy.
Current policyholders can expect to see the credit when their policy renews -- you do not need to take any action to receive this credit.
Their website says, in part, “For our policyholders that are unable to make a payment due to COVID-19, we want you to know that we&aposre here to help support you. Effective immediately, we&aposre pausing cancellation of coverage due to non-payment and policy expiration through at least April 30, 2020 or later as directed by your state. We hope that this can provide some peace of mind to you, our policyholders.”
Geico also suggests that you may be able to get a little slack, if you can’t make payments on time: “We also understand that everyone&aposs financial situation can be different. We&aposre dedicated to working with you, including flexible payment plans and/or special payment plans once normal billing resumes.”
According to the website, the insurer is giving its U.S. customers who have personal auto policies a 15% credit on their April and May premiums. Travelers is providing billing relief for all American customers, “including suspending cancellation and nonrenewal of coverage due to nonpayment through May 15, 2020 (no interest, late fees or penalties will be charged).”
The insurer indicates on its website that if you struggle to pay a premium up until May 15, 2020, you won’t have the policy cancelled. The timeline may be adjusted, as in extended, the website also notes. Progressive customers who have a policy in force as of April 30th will be credited 20% of their April premiums in May and personal auto customers with a policy in force as of May 31st will be credited 20% of their May premiums in June. Customers will not need to take any actions to receive the benefits. The credits will be applied automatically to your policy and those who have paid in full will receive a refund of the credited amounts. Here are other COVID-19 relief measures being put into effect:
- Suspending cancellations and non-renewals on personal and commercial lines policies for non-payment through May 15th
- Providing commercial lines customers with a business owner or general liability policy underwritten by Progressive a 20% credit on April and May monthly premiums
- Providing a full-service claims experience for first responders and health care workers who experience a car accident by providing enhanced roadside service (including transportation to work or home from the accident if needed), expedited tow service and vehicle repairs, pick up and delivery of the repaired vehicle, all while deferring deductibles and providing a rental vehicle if needed
- Expanding coverage for personal auto customers temporarily delivering food or medicine and allowing commercial customers additional coverage options for delivery
- Extending payment leniency, waiving late fees and pausing collections
- Deferring deductibles to help customers who cannot pay out of pocket to get their car repaired
This carrier recently announced it will reduce rates across the board for its policyholders in the 12 states in which it does business. The rate adjustments will take effect when you buy a new policy or upon renewal of an existing policy.
“While some auto insurers this week announced short term auto insurance rebates, Erie&aposs decision to lower rates is designed to offer more impactful relief to customers — now and in the future,” reads a statement at its website. Erie agents are also on hand to help with h delaying payment dates, adjusting installments, changing pay plans and waiving penalties and fees.
On its website, State Farm also recently announced it will provide its policyholders a credit. 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.
USAA on its COVID-19 information website just announced that customers 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. The credit will be automatically applied to bills, so you won’t need to take any action to receive it. Additionally, USAA is doing the following for its policyholders:
- Special payment arrangements are available to assist members experiencing financial difficulties. USAA will not cancel members’ auto or property insurance policies or charge fees due to late payments on USAA auto and property insurance coverage through June 17, 2020.
- Expanded auto insurance coverage for members who use their personal vehicles to deliver food, medicine and other goods for commercial purposes
Personal auto insurance customers will receive a 15% refund on two months of their auto premium, based on their premium amount as of April 7, 2020. At its website, Safeco has automatically stopped charging late fees and have temporarily paused personal auto & home coverage cancellations due to non-payment from March 23 through May 22, 2020.
Nationwide is offering a one-time premium refund of $50 per policy for personal auto policies active as of March 31, 2020. The refund will arrive in the next 30 days. The carrier will suspend the cancellation of some policies, defer payment deadlines, and waive some late fees. Home and auto customers can contact call 877-669-6877
Farmers is reducing April premiums by 25%. Farmers is temporarily pausing policy cancellations due to non-payment, from now through May 1, 2020. This means you will have until at least May 1 to make a mid-term payment, if one is due, and any unpaid balance will carry over to your next billing statement with no late fee or other penalties. If you receive a notice that your policy is expiring and you need additional time to pay, please contact the company and it will extend your due date until at least May 1 and waive any late fees. To make such a request, call 1-888-327-6335.
The Hartford&aposs auto insurance customers get a 15% credit on their April and May auto insurance premiums. The carrier will waive late-payment fees and cancellations for non-payment until May 31 for auto and home policies.
Mercury Insurance will be giving back 15% of monthly auto insurance premiums to customers in April and May.
MetLife Auto & Home is halting cancellations of auto policies due to nonpayment through July 1. Auto customers who are paid to date will receive a 15% credit for April and May based on their monthly premiums. The company, which already provides coverage for customers using personal vehicles to deliver medicine or food, is extending coverage under all of its personal auto insurance programs at no additional cost as customers make deliveries during the pandemic. The additional protection will be in place from March 20 to May 1.
The Pandemic Could Bring Rates Down
Even if you’re not eligible for a refund, you may see your rates go down in the future.
“Rates are continuously adjusted at each policyholder’s renewal,” says Loretta Worters, the vice president of media relations for the Insurance Information Institute.
Rates, she explains, are established using multiple years’ data, which means they adjust gradually, in both an upward and downward direction.
“If there is a sustained decline in number and cost of insurance claims, rates will be adjusted,” she says. “If we begin to experience a sustained reduction in auto claim frequency, where people are remaining at home for many months, that could also lead to favorable premium changes for drivers.”
Ask the Insurance Expert
Laura Longero
Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.
Ask the Insurance Expert
John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
Ask the Insurance Expert
Leslie Kasperowicz
Managing Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
Ask the Insurance Expert
Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.