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As the coronavirus pandemic continues to keep us all at home, you’ve likely found you’re using much less gas and, in fact, hardly using your vehicle at all. While we all have to make trips to the grocery store or venture out for some drive-thru food, heading out on random shopping trips, vacations or visits to family and friends is out of the question right now.
Auto insurance companies — including State Farm, Allstate, Geico and Liberty Mutual — have taken note of this change. Because they’re anticipating fewer auto claims while people are sheltering in place, many have decided to give millions of dollars back to policyholders.
Allstate, for one, will be returning $600 million in premiums to customers. They explained in a press release that most policyholders will get back 15% of their premium in April and May. Customers will receive the money through a credit to their bank account, credit card or Allstate account.
Geico is also offering auto and motorcycle policyholders a 15% credit, which they say will be worth about $2.5 billion. The same goes for Liberty Mutual and Safeco, who say they will also be pausing late fees and cancellations for missed payments.
USAA members with auto insurance policies, meanwhile, will get a 20% credit on two months of premiums, totaling $520 million, while American Family Insurance will return about $200 million to its policyholders by making a one-time payment of $50 per vehicle covered by one of their policies. American Family says the typical family has two vehicles, so the average relief check will be $100.
Progressive will be providing $1 billion to customers as a result of the fewer claims that come with less frequent driving. They will be providing 20% back in May for customers who have a policy in force as of April 30 and 20% back for customers in June who have a policy as of May 31.
And State Farm, the largest car insurer in the U.S, is giving $2 billion back to its auto insurance customers. “On average, State Farm Mutual auto customers can expect to receive a credit of about 25 percent of premium for the time period March 20 through May 31; exact percentages will vary by state,” the company said in its announcement about the program.
If you are a customer of an insurance company not mentioned here, keep an eye out to see if and what they will be offering.
Allstate is also going one step further and offering their Allstate Identity Protection product free to U.S. residents for the rest of the year — even those who are not Allstate customers. The insurance company says coronavirus-related phishing scams have grown during the crisis as more people work, take classes and meet up with friends virtually.
Allstate says their identity protection monitoring helps you identify threats to your data and identity, while their privacy advocates are available 24/7 to manage your recovery and restore your identity. They will also cover the cost for many of your out-of-pocket expenses, lost wages or legal fees if you have your identity compromised.
To read terms and conditions and sign up for free identity protection until Dec. 31, just visit Allstate’s website by May 31. There is no opt-out required — the protection will simply end at the end of the year. You do have to provide a credit card upon sign-up, but you will not be charged and will have the option to elect a paid subscription before the free service ends.
Do you find that you’re driving less right now due to the novel coronavirus?