Coronavirus Auto Insurance Refunds: How Much to Expect

Auto insurance companies are offering refunds. This is how and what you can do to get your refund.

Many auto insurance companies are reducing premiums because there are fewer people driving during the coronavirus epidemic. This is due to high unemployment rates and social distancing guidelines.

Although your car insurance policy may not be of paramount importance during a pandemic it is important to understand the options available and how you can save money.

Below is a list of companies that offer coronavirus credits, refunds, or discounts. Also, the details of these offers.

Auto insurers offer Coronavirus Rebate

21st Century

21st Century customers with an active policy on April 1 received a 25% refund for the months of March and April. Customers with active policies on May 1 were eligible for a 15% refund. According to the company, all refunds will be sent as checks at the end May or early June.

Allstate

Allstate says its auto insurance customers will get, on average, 15% back based on April, May and June monthly premiums. The existing payment method (check, credit card) will be used to return the money. According to the company, people who use the Allstate app will receive faster payments. Allstate will also extend coverage to consumers who drive their vehicles commercially during an emergency in their state.

American Family

American Family gave its car insurance customers $50 per vehicle if they had a policy in place on March 11, 2020, the day the World Health Organization declared the pandemic. The paper check was used to issue refunds.

A 10% credit will be automatically given to anyone who purchases or has a policy between July 1 and Dec 31. You will be refunded if you have not paid your premium in full.

Auto-Owners

Auto-Owners‘ customers received a 15% refund for April and May payments, with most refunds issued by May depending on your state. All remaining balances were returned by check or automated payment. Rebates were applied automatically.

CSAA (an AAA regional insurer)

CSAA gave customers a 20% refund on two months’ worth of premiums. Customers with an active policy as of April 30th should have received payment by mid June. Customers with active policies on June 30 will receive an additional 10% refund. Refunds will be sent in mid-July. Customers with bills will receive credits. Customers who have paid their bills will receive a refund to the account that they used to pay their policy. CSAA will also extend coverage to customers who use their cars for delivery of food or medicine until June 30.

Erie

Erie Insurance is making adjustments to drivers’ rates. Customers who purchased policies on April 1st were also eligible for refunds. Erie estimates that the refunds accounted for 30% of customers’ premiums over two months. Erie said that checks were sent in May and that customers didn’t have to do anything to get the payments.

Farmers

Farmers refunded 25% of private auto premiums for April and 15% of premiums for May for all customers, except for New York drivers. New Yorkers were instead awarded a 40% credit based upon full-term auto premiums paid as of May 7. Customers were credited on their next bill and those who had already paid all of their premiums received a refund. Farmers said that there was no need to take any action to get the credit or refund. Farmers will continue to monitor the situation and determine if further action is required.

Geico

Geico is giving renewing auto and motorcycle customers a 15% discount on their entire policy (typically 6 or 12 months) when they renew between April 8 and Oct. 7. New customers who join Geico will also be eligible for this discount. To take advantage of this discount, you don’t have to do anything except renew your policy.

The Hartford

The Hartford gave a discount to all its customers who had an auto insurance policy in place on April 1. Customers who had auto insurance policies in place on April 1st received a 15% credit towards their May and April payments. Customers didn’t have to do anything except apply the credit automatically.

Kemper

Kemper offered a 15% credit toward April and May payments for customers with car insurance policies in effect on the last days of those months. The credit was applied to the following month’s bill. Customers who had already paid for the credit received a refund. To claim the credit or refund, no action was necessary.

Liberty Mutual and Safeco

Liberty Mutual and its subsidiary, Safeco, issued 15% refunds on two months’ worth of payments to car insurance customers with policies active on April 7. You will receive a check or a deposit back to the account from which you paid. To receive your check, there is no need to take any action. Most states received refunds by May 20. Customers in New York and Michigan should get their refunds before June 20th. Liberty Mutual extended coverage to personal vehicles used by customers for commercial purposes in connection with the COVID-19 epidemic (delivering medicine, food and other medical supplies, etc.). .

Mercury

Mercury refunded 15% of two months’ worth of payments to its auto insurance customers. These payments were returned to their accounts and no action was necessary.

All over the country

Nationwide skipped the math and offered a simple $50 refund to its auto insurance customers. Anybody who had a policy in force on March 31 was eligible for the refund. No action was required. The funds were deposited into the customers’ payment accounts. This was a per-policy refund and not per vehicle.

Progressive

Progressive gave its customers 20% of their April and May payments back in all states except New York. Customers from New York received credit for May and June. These credits were available to any person with an active auto policy at each month’s end. They didn’t require action. The 20% refund was given to customers whose policies were already paid up.

State Farm

State Farm is giving customers about 25% back on auto insurance payments made between March 20 and May 31. State Farm estimates that this will average out to $20 per vehicle per month. State Farm is also working to lower car insurance rates in every state, with an average 11% rate reduction.

Travelers

Travelers is giving its auto insurance customers a 15% rebate for April, May and June payments. Anyone who had a policy between April 1st and June 30 can apply for the credit. You can get a refund even though you no longer have a policy. Customers who have paid up for the credit will automatically apply it. Customers who already paid will get a refund to their accounts. You will receive a check if you paid via payroll deduction.

USAA

USAA gave a 20% credit on three months’ worth of payments for all customers who had an active auto policy between March 31 and April 30. These credits were applied automatically and customers didn’t need to do anything to get them. USAA extended policies to customers whose vehicles are used for business purposes. This does not include delivery by a rideshare company.

Why auto insurance companies are giving back money

The Society of Actuaries, who are the people who do the math behind insurance, published a March report that stated, “Increased Social Distancing, Remote Work may Lead to Less Auto Coverage Exposures and Potentially Less Auto Insurance Claims.” This means that insurers will have to make fewer claims.

According to the Iowa Department of Transportation, traffic in Iowa dropped by 40% to 50% in comparison to April 2019.

There are fewer cars on the roads, which means there are fewer accidents. New York City Open Data Project shows that collisions in March have declined by more than 35% between 2019 and 2020.

These changes have resulted in many insurance companies returning some money to customers, as you can see.

Here are some things to consider while you wait for your refund

After you have seen the rebates offered by your insurance company, here are some important points.

First, the listed insurers do not require you to do anything in order to receive a refund. Consumers have been warned by the Federal Communications Commission that scammers could increase due to confusion caused by the coronavirus. Do not be misled by anyone asking for personal information to process a refund.

A refund may not be your only option for auto insurance. Nonpayment can also be halted by many companies who are easing the payment deadlines. There are things you can do to keep your coverage if you’re struggling to pay for it. You should keep in mind that not all relief options are available beyond May. However, some have. For the latest information, check with your insurance company.

A third reason is that many of these benefits still need to be approved by the state. There are many moving parts for regulators, so refunds may not be part their long-term plan.

This is because relief options can vary according to your state. New Yorkers should be aware of specific refund guidelines. In most cases, New Yorkers will receive their refunds in May June or July, rather than April May and June.

Your driving habits may have changed in the past, which could affect your coverage. You may be driving your own vehicle to deliver food or other goods for your employer. You would normally need commercial auto insurance. This distinction is sometimes overlooked by some insurance companies, but not all. Before you use your car to help your job, it’s a good idea to consult your provider.

What’s next for auto insurance?

Insurers are still trying to figure out how the coronavirus will affect their business. These refunds may be extended for those companies that are located in the most affected areas. As state regulators take steps, consumers may have other options to save money on car insurance.

You have the option to take matters into your own hands. If you’re driving less, paying too much or unhappy with how your current auto insurer is handling the pandemic, shop around and compare car insurance rates. To ensure you are paying the correct price, it is essential to research what options are available. You may not get a rebate if it doesn’t cover the additional costs. It can save you money in the long-term and help you to see things from a different perspective.