admin
Following orders to stay at home as much as possible means that many people are not out driving as much as normal. In addition, layoffs related to the COVID-19 pandemic have left many people with far less income.
In the interest of providing help to customers now, when they need it most, some auto insurance providers are offering discounts or rebates.
Shelter Insurance will issue a payment to policyholders representing approximately 30 percent of their personal auto monthly premium for the months of April and May. Insurance agent Glendon Sattler was glad to see his company provide this service during this time.
“My company always stands by doing the right thing for our clients,” Sattler said. “Part of that is this response during this time since people are home more and not driving much.”
Sattler is also a broker for Progressive Insurance noted that subject to state regulatory approval, the insurer’s personal auto customers who have a policy as of April 30 will be credited 20 percent of their April premiums in May. Additionally, personal auto customers with a policy as of May 31 will be credited 20 percent of their May premiums in June. Progressive estimated that the sum of both credits will total $1 billion.
“We understand how difficult and uncertain people’s lives are right now. While auto insurance might not be the most pressing topic on everyone’s mind, we know that finances could be. For our customers who have trusted us to be there in their times of need, we’re fulfilling that promise. We want them to know how much we care,” Progressive CEO Tricia Griffith said in a news release. Progressive is still working on the method in which customers will be credited.
Farmers Insurance is offering a similar policy structure with a 25 percent payment for the month of April for existing customers. This means that if a person were to switch today, they would not be eligible for the payment.
On the other hand, State Farm auto customers can expect to receive a credit of about 25 percent of premium for the time period March 20 through May 31. Every State Farm Mutual auto insurance customer will receive credits applied against bills beginning as early as June.
“I love that State Farm is doing something when they don’t really have to,” Perryville State Farm agent Landon Besand said.
Besand noted that the percentage will be credited to customer accounts with a dividend. On the local level, Besand, along with State Farm, is offering a chance to win an activity basket. Each week, the local Facebook page will offer a fun activity with a chance to win a basket.
“We wanted to do something positive for the community and for the kids that are stuck at home,” Besand said.
American Family Insurance will return a total of $200 million to auto insurance customers beginning in mid-April. Customers will receive $50 per vehicle covered by their policies.
“As part of the Perryville and Perry County community, I know how the COVID-19 pandemic is impacting our customers and others,” said Dawn Leible, an American Family Insurance agency owner in Perryville, “I’m proud to be able to assist customers, who are at the center of everything we do.”
For more information on specific policies, customers are encouraged to contact their local insurance agent.
