Wisconsin-based auto insurers offer refunds to customers during COVID-19 crisis

Commute times in the Milwaukee area are shorter than in most other large American cities.

With so many customers stuck at home due to the COVID-19 coronavirus pandemic, several Wisconsin-based auto insurers and insurance companies across the country are providing financial relief to policy holders in the form of discounts or cash and credit refunds.

Sheboygan-based Acuity is discounting personal auto rates for customers with an average discount of $50 to $100 for policyholders with two cars. This reduction will benefit existing as well as new policyholders and provide nearly $20 million in relief to the insurer’s personal lines customers.

West Bend Mutual Insurance is also providing relief for its policyholders, including a one-time payment of $50 to Home and Highway policyholders whose vehicles were insured with the company as of March 11, 2020. In addition, the company is extending premium due dates for all policy holders impacted by the crisis.

Madison-based American Family Insurance has established the Auto Insurance Premium Relief Payment program whereby customers will receive a one-time payment of $50 for each vehicle insured under a personal auto insurance policy.

Here’s a roundup of the top national auto insurers that have also announced cash or credit discount plans and the refund amount policyholders can expect to receive. However, many insurance companies are awaiting approval from state insurance regulators before disbursing funds.

Allstate

Allstate is offering its “Shelter-in-Place Payback” that will provide auto insurance customers more than $600 million in April and May. On average, personal auto insurance customers will get a 15% refund based on monthly premiums during those two months. The insurer will automatically deposit money back to the bank or credit card account based on the customer’s preference.

Esurance

Esurance, an Allstate Company, will offer most customers a payback of 15% of monthly auto insurance premiums during April and May. The payback is calculated based on monthly premium, so policyholders will get a payback even if paid all at once.

Farmers Insurance

Farmers Insurance announced it would reduce auto insurance premiums by 25% for the month of April. The reduction will be applied as a credit on the customer’s next billing statement. Those who recently paid off their account in full will receive a refund for the amount of the reduction.

GEICO

Geico will apply a 15% discount to its auto and motorcycle policyholders for policies set for renewal between April 8 and Oct.7, 2020. The credit will also apply to new policies purchased during that period.

Liberty Mutual

Liberty Mutual will roll out its Personal Auto Customer Relief Refund, which will return approximately $250 million to customers. Personal auto insurance customers will receive a 15% refund on two months of their auto premium, based on a policyholder’s premium amount as of April 7,2020.

Nationwide

Nationwide is offering employees and policyholders a one-time premium refund of $50 per policy for personal auto policies active as of March 31, 2020. The insurer says refunds will be automatically credited to the customer’s most recent payment method within 30 days.

Progressive

Progressive customers with active personal auto policies at the end of April will receive a credit of 20% of their April premium. The insurer will also offer the same credit at the end of May, with the possibility of extending the same credit in the following months.

State Farm

State Farm Mutual is returning up to $2 billion in dividends to its auto insurance customers. On average, most auto policy holders will see a 25% policy credit.

USAA

USAA will be returning $520 million to its policyholders. Each of the insurer’s members with an auto insurance policy as of March 31, 2020 will receive a 20% credit on two months of premiums.

Get more news and insight in the March 30 issue of BizTimes Milwaukee. Subscribe to get updates in your inbox here.

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Brandon Anderegg
Brandon covers startups, technology, manufacturing. He previously worked as a general assignment and court reporter for The Freeman in Waukesha. Brandon graduated from UW-Milwaukee’s journalism, advertising and media studies program with an emphasis in journalism. He enjoys live music, playing guitar and loves to hacky sack.

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