Select insurers extend insurance policy refunds through June
In April, more than 82% of auto insurance companies offered policyholders refunds and credits, according to the Consumer Federation of America.
As Americans continue to drive significantly less through the coronavirus pandemic, select insurers are extending discounts for auto policyholders through June, while other insurers are promising future rate cuts without addressing near term overcharges faced by existing customers.
This week, the Consumer Federation of America applauded USAA and Allstate for extending their monthly relief for April and May into June.
Allstate announced it is extending its Shelter-in-Place Payback through June 30 for personal auto insurance customers. The company is also extending the signup period for free identity protection to June 30, 2020, for all U.S. residents.
Allstate was the first major insurance company to announce in April that it would give its car insurance policyholders a credit of about 15% of monthly premiums because of the pandemic for April and May. That same credit is extended through June 30.
The company announced Esurance and Encompass customers will also receive an automatic credit to their accounts, adding that most will receive 15% of their monthly premiums.
Around the industry
In April, more than 82% of auto insurance companies, including State Farm, Progressive, Geico and Liberty Mutual, offered policyholders refunds and credits, totaling more than $6.5 billion through May, according to the Consumer Federation of America.
State Farm’s recently promised average national rate reductions of 11% will not take effect until August or September and then only when customers renew their policy. American Family has promised a 10% rate reduction starting with July renewals. GEICO continues to withhold all relief from its customers until they renew their policy with the company.
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