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Insurance Carriers Announce Personal Auto Premium Refunds/Credits

Last Updated 04/14/20

 

In the midst of this uncertain time several of our insurance carrier partners have announced that they will providing personal auto premium credits or refunds to policyholders.

Each insurance carrier’s premium credit or refund program is unique in the credits or refunds being allotted to policyholders.

 

Included below are program details from the following insurance carrier partners:

 

Auto Owners: COVID-19 Special Personal Auto Premium Refund Program

  • Auto Owners Insurance will be providing a 15% premium refund to personal auto policyholders for the months of April and May.
  • This refund will be processed upon regulatory approval in each state.

 

Chubb Announces Premium Credit for U.S. Auto Policyholders

  • Chubb is providing its personal auto insurance clients in the U.S. with a credit on annual renewal premiums as a result of reduced driving activity.
  • Upon renewals, clients will receive a credit reflecting 35% premium reduction for the months of April and May, with additional discounts for subsequent months, as the situation warrants.
  • Clients will not have to request the credit, it will be applied automatically at renewal.
  • All premium and rate adjustments are subject to regulatory approval.

 

Cincinnati Insurance Companies: Personal Lines Stay-at-Home Auto Premium Credit

  • Cincinnati Insurance and Cincinnati Casualty auto clients will receive a 15% credit per policy on their April and May premiums – pending regulatory approval.
  • No client action is required to receive this discount.

 

Grange Insurance: Return Premium to Personal Auto Policyholders

  • Personal auto policyholders to receive a 25% credit for the months of April and May.
  • Pending regulatory approval, Grange will issue payments to all personal auto policies in force for the months of April and May, with the flexibility to extend depending on circumstances.

 

Motorists / Encova Insurance

  • Policyholders will be issued a 15% policy credit for the months of April and May who remain insured as of May 31, 2020.
  • No additional action is required by policyholders to receive the credit.
  • The credit will be applied to their bill, or if a policyholder has already paid in full, will be issued a check. Credits are subject to regulatory approval.

 

Progressive: Returning $1 billion in Auto Insurance Premiums to Policyholders

  • Subject to approval by state regulators, Progressive personal auto customers who have a policy in force as of April 30 will be credited 20% of their April premiums in May and personal auto customers with a policy in force as of May 31 will be credited 20% of their May premiums due in June.
  • The estimated sum of these two credits will total approximately $1 billion. Progressive may offer additional credits in the upcoming months.
  • Customers/policyholders will not need to take any action to receive the benefits.
  • The credits will be applied automatically to the customer’s policy and those customers who have paid in full will receive a payment of the credited amounts. In this case, the money will be return to the payment account on file with Progressive.

For customers/policyholders who have a balance on their auto policy, Progressive will apply the credit directly to the remaining balance.

 

Safeco/Liberty Mutual: Personal Auto Customer Relief Refund

  • Returns an estimated $250 million to personal auto insurance policyholders
  • Personal auto insurance clients will receive a 15% refund on two months of their auto premiums, as of April 7, 2020, pending regulatory approval.
  • The refunds will begin in April and will be issued either by check or in the manner the client made their most recent payment.
  • The payments will happen automatically, and clients do not need to call Safeco/Liberty to receive the refund.

 

Travelers: Stay-at-Home Auto Premium Credit Program

  • Personal auto insurance customers will receive a 15% credit on April and May auto premiums.
  • Travelers will automatically credit customers’ accounts, providing policyholders with prompt and much needed relief during this time.

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