Several insurance companies have created relief programs to support their car insurance customers during the COVID-19 pandemic. Most of these insurers are providing premium refunds, pausing policy cancellations, extending payment deadlines and more. And if you have an auto insurance policy in effect between April and May, you’ll probably qualify. However, while you’ll want to communicate with your insurer to see whether you qualify for relief, many Americans are also consulting financial advisors to help them navigate a looming recession. Plus, you can take also take advantage of coronavirus crisis government help. Read on to see which companies are currently offering auto insurance relief and whether you’re eligible.
Geico
Geico has pledged to provide $2.5 billion in policy credits to help its coronavirus-impacted policyholders. The company is giving all of its auto policyholders a 15% credit on their next six-month or 12-month policy terms. The credit also applies to motorcycle and RV policy holders. Geico will offer the credit for renewals between the following dates:
- 4/08/2020 – 10/07/2020 for six-month policies
- 4/08/2020 – 04/07/2021 for 12-month policies
The insurance company also offers a Geico Giveback Estimator tool that helps its customers calculate their credits. Learn more about Geico’s coronavirus discounts here.
State Farm
State Farm’s Good Neighbor Relief fund is returning a $2 billion dividend to auto insurance policyholders, allowing them to earn a policy credit of up to 25%. The company says on its website that every Mutual Auto policyholder will receive a dividend if they have an auto insurance policy in effect between March 30 and May 31, 2020.
Personal lines auto, RV, motorcycle, business use personal auto, commercial auto, school bus and/or antique policyholders earn the dividend as a premium credit to their policy, according to State Farm’s website. Find more information on the company’s relief here.
Progressive
Progressive established the Apron Relief Program to support its coronavirus-impacted customers, employees, agents and communities. For its auto insurance customers, Progressive offers a 20% premium credit. The credit only applies to auto policyholders with active personal auto policies at the end of April or May. But the April and May rule won’t apply to New York customers. Instead, Progressive applies the credit for May and June premiums.
Learn more here.
Allstate
This company is offering a Shelter-in-Place Payback for its auto insurance customers. Allstate customers with April and May personal auto insurance premiums will get a 15% credit. Customers will be eligible for the April payback if they had policies in place as of March 31, 2020. Those with policies in place as of April 30, 2020 will be eligible for the company’s May credit.
Nationwide
Nationwide is also providing relief to support its customers experiencing economic hardship. Its auto insurance relief consists of a one-time refund of $50 per policy, and it only applies to customers with policies active as of March 31, 2020. Nationwide says this is equivalent to an average savings of 15% for two months.
Motorcycle and PowerSports policyholders aren’t eligible for the refund. Learn more here.
Farmers Insurance
Famers Insurance is offering two different personal auto premium credits for April and May. Customers with auto policies in force as of April 1, 2020 qualify for the 25% April premium credit. You’ll earn a 15% personal auto premium credit for May if you had a policy in force as of May 1, 2020.
However, New York State customers receive a different credit. Farmers Insurance offers New York policyholders a single 40% credit of one month’s premium. The company provides more information on its coronavirus relief provisions here.
American Family
American family said it’s returning approximately $200 million to its auto insurance clients to combat the economic challenges presented by COVID-19. The relief comes in the form of a one-time $50 payment per vehicle covered under a personal auto insurance policy.
USAA
USAA gave a $520 million dividend back to its auto insurance policyholders in early April. This came with a 20% credit on two months of premiums for every USAA customer with an auto policy in effect as of March 31, 2020.
The company recently announced that it’s giving another $280 million in dividends back to its auto insurance customers. This equates to an additional credit of 20% of one month’s worth of premium, according to USAA’s website. Customers with policies in effect as of April 30, 2020 will automatically receive the credit after they’ve received the previous dividend’s credit. The company will apply the second premium dividend to customers’ auto and property insurance accounts.
Liberty Mutual
Liberty Mutual has also created a Personal Auto Customer Relief Refund to support its auto policyholders during the coronavirus. The program will return roughly $250 million, giving personal auto insurance customers a 15% refund on two months of their premium (based on each customer’s premium amount as of April 7, 2020).
Liberty Mutual has also paused personal auto cancellations due to nonpayment from March 23 to June 1, 2020, and the company is extending payment dates. Learn more here.
MetLife
MetLife is providing an auto relief credit to its customers with auto policies as of May 31, 2020. Eligible customers will receive a credit of 15% for two month’s premiums.
Bottom Line
If you or someone in your family has an auto insurance policy, you may qualify for coronavirus relief. Many insurers are expanding their auto insurance guidelines to support those adversely affected by COVID-19. But you’ll want to pay close attention to the conditions under each insurer’s rebate policy, since most require you to have a policy in effect as of a certain date.
Tips on Managing Finances During Coronavirus
- If you’re looking for ways to protect your finances while saving for retirement, a financial advisor can help. These professionals can provide financial guidance on various different areas of wealth planning. SmartAsset’s free financial advisor matching tool connects you with up to three advisors in your area.
- Even if you don’t qualify for auto insurance relief, you can still utilize other forms of coronavirus aid. This includes coronavirus relief for rent and mortgage payments, coronavirus stimulus checks and a tax deadline extension.
- It’s never too early to begin saving for retirement — even during the coronavirus pandemic. Our retirement calculator can help you determine exactly how much you’ll need for your post-employment years.
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