We are all home and not driving our cars. The shelter in place orders and social distancing have resulted in a notable decrease in the average miles driven per day. This results in a decline in automobile claims. These savings for the Personal Auto insurance carriers will be shared with their policyholders.
To get relief into your hands, most insurance companies are offering a one-time premium refund. Other insurance companies are giving back a portion of their premium. The amount varies by insurance company, but it could mean $50 per policy or $50 per vehicle. So, check to see if you are receiving a premium credit on your auto policy premium or a check in the mail.
The premium relief for personal auto policies are calculated differently by each insurance company:
- AARP- The Hartford – 15% refund for 2 months (April and May)
- Allstate – 15% refund for 2 months (April and May)
- Farmers & 21st Century – 25% reduction for April premiums
- GEICO – 15% credit
- Liberty Mutual – 15% refund for 2 months (April and May)
- Main Street America Group – $50 premium refund per vehicle
- Nationwide – $50 refund on a 2-vehicle policy
- Penn National – 15% refund for 2 months (April and May)
- Progressive – 20% credit for 1 month (April)
- State Farm – average of 25% premium credit (as early as June)
- Travelers – 15% refund for 2 months (April and May)
- USAA- 20% credit for 2 months
This is a quick list of the refunds/reductions. Each carrier will have their own guidelines and announcements, and this will vary by state.
In addition, most carriers are extending grace periods for the premium due and not issuing cancellation notices during the emergency pandemic. This will very by insurance company, so please check your individual situation.