Auto Insurers' COVID-19 Response: Refunds, Relief Funds, and Community Support

Auto Insurance Refunds

Auto insurers are offering refunds to their customers as people are driving less due to coronavirus shutdowns. No action is required by customers to receive credit in most cases, but Sean Kevelighan, Triple-I CEO, urged customers to reach out to their insurers. "We always recommend the customer contact the insurer and explain their individual situations. Insurers are always happy to look at individual situations and work with the customer," he said in a Weather Channel interview.

Major Insurers' Refunds

Here are the refunds some of the major auto insurers are offering: Allstate customers will get "Shelter-In Place Paybacks," adding up to $600 million over the next two months. American Family will return approximately $200 million to its auto insurance customers. Farmers auto customers will receive a 25 percent reduction in their April premiums. The Hanover Insurance Group will return 15% of April and May auto premiums to its eligible personal lines customers. The Hartford announced its COVID-19 Personal Auto Payback Plan, which will provide customers with a 15 percent refund on their April and May personal auto insurance premiums. Liberty Mutual will return approximately $250 million to customers. MetLife Auto & Home customers will receive a 15% credit for April and May based on their monthly premiums. Nationwide is giving a one-time premium refund of $50 per policy for personal auto policies active as of March 31, 2020. State Farm announced an up to a $2 billion dividend that will go to its auto insurance customers. The Travelers Companies is giving U.S. personal auto insurance customers a 15 percent credit on their April and May premiums. USAA is set to return $520 million to its members for driving less during the COVID-19 shelter-in-place orders.

Community Support and Relief Funds

The Insurance Industry Charitable Foundation (IICF) has launched a national industry-wide fundraising campaign to benefit vulnerable children. The Allstate Foundation together with Allstate employees and agency force members, will donate resources across the nation to support communities during the COVID-19 crisis. The Nationwide Foundation is making $5 million in contributions to local and national charities to support medical and economic response efforts.

In conclusion, auto insurers have responded to the COVID-19 pandemic by offering refunds and contributing to relief funds. These actions reflect the industry's commitment to supporting their customers and communities during these challenging times. For customers, it is advisable to contact their insurers to understand the specific benefits they are eligible for and to stay updated on any additional relief measures that may be announced.