COVID-19 has truly changed the world in more ways than one. The pandemic has caused many individuals to have to stay inside due to stay-at-home orders in their states or across the country. These stay-at-home orders have even caused individuals to drive less to keep their families safe.
Many car insurance companies have noticed this downward trend of less driving. For this reason, they are offering refunds on premium payments due to a drop in driving and need for car insurance. Each company is taking its own measures due to the efforts you have put in place to keep you and your family safe. Continue reading to learn more.
Allstate
Allstate is planning to give out two refunds to customers due to the coronavirus pandemic. Customers can expect their refunds to come to their accounts in both April and May. The refund may be processed to be as much as 15% back.
This refund will be either credited to the costs of premiums or given directly to the credit cards associated on one’s account. The refund will automatically be issued. It is important to note that this 15% refund will be different for every customer as it is dependent on the refund amount.
Farmers Insurance
Farmers Insurance is attempting to give out their refunds as a form of a credit on the account. Auto insurance premium payments are being cut by as much as 25% off. This discount will be automatically applied to your next month’s premium bill.
Some customers decide to pay their premium amounts in full after purchasing their auto insurance. For these customers, they will be issued a refund of actual money. It will be sent automatically to the credit card company which the company has on file for the customer to pay the annual premium.
Geico
Geico customers can expect to receive their refund anytime between April 8 and October 7. This is due to the fact that the company intends to issue the refund when a customer renews an auto policy. It is only given to customers who renew during this few month time period.
The credit given will be for 15% off. It will apply to both customers who are renewing their policies and to new customers. The credit will populate automatically to your new premium in order to save you money right away. They believe this will equal around $150 for auto policy holders.
Liberty Mutual
Liberty Mutual customers can expect their refunds to come soon. The company is issuing refunds within the next few weeks to auto policy holders. These refunds will be two months worth of savings on your auto policy due to less driving.
It is expected that each month’s worth of savings will be around 15% per auto policy premium. You will receive your refund most likely as the last credit card that was used. If you used cash or check to pay your latest bill, you will receive a paper check in the mail.
Progressive Insurance
Progressive is giving a slightly larger refund than other companies are giving. Customers can expect to see a refund of about 20%. It will also be applied on two months worth of premium payments, specifically April and May.
The company is hoping to have their refund applied as a credit to a customer’s bill on their accounts. The credit should be seen on accounts in May and June. May will have the April credit, while June will have the May credit. The credits will be applied automatically without requiring the customer to take any steps.
State Farm
State Farm has not stated a specific percentage that every customer is receiving as a refund on their auto policy premiums. In total, they are spending $2 billion in rebates, however. The company has estimated that most customers will receive at least 25% back on their premiums.
This refund will only be received by customers who had insurance with the company during a time that was between March 20 and May 31, 2020. The refund will be automatically given without doing anything. It should arrive in June for most customers, according to the company.
Other Companies
There are several other lesser used vehicle insurance companies that are offering refunds. The Hartford is offering 15% back to all customers as a cash refund. It will be given back for two months of 15% back so long as customers have had insurance since April 1.
Nationwide is giving customers $50 each as a cash refund which customers will receive at a time decided by their states. USAA is giving 20% back on two months of premium payments. USAA customers should have had a policy at least since March 31 in order to receive this refund.
Final Thoughts
The pandemic has changed the way many companies are having to do business. This even includes insurance companies. There is a much lesser need of insurance due to stay-at-home orders that have been in place across the nation, causing the price of premiums to be unnecessary.
Thankfully, many insurance companies are offering ways to help customers get at least part of their premiums back. Many companies are offering refunds or credits of at least 15% to ease the extra costs. Customers should be patient when waiting for their refunds from their insurance company, as each has its own set of timelines.
