$800 Million in Premiums to be Refunded by Auto Insurance Companies
We are all doing our part to stop the spread of COVID-19, including staying home, as directed by Nevada Governor Steve Sisolak. Staying in the comfort of your home means that you will be on the road less. Luckily for you, your time inside may soon be paying off in more ways than one.
One major news story reported in the last few days is that automobile insurance companies Allstate, Liberty Mutual, and American Family Insurance are going to give back about $800 million to their auto insurance customers. They lead the industry in helping those who have been financially impacted or who are driving less during the coronavirus crisis.
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What does this mean for you?
It’s important to have all the information to establish whether this news will affect you and what you are entitled to as an Allstate, Liberty Mutual, or American Family Insurance customer. Below, you will see what each company is offering during this trying time.
Allstate: The company has stated that 15% of premiums paid by US customers in April and May for personal auto insurance will be refunded. Allstate CEO Tom Wilson adds, “Given an unprecedented decline in driving, customers will receive a Shelter-in-Place Payback.”
Liberty Mutual: Liberty Mutual and their partner, Safeco, have announced that auto insurance customers will receive a 15% refund on two months of their premiums.
American Family Insurance: American Family Insurance is taking a different approach and giving back $50 per insured car on customers’ policies, which accounts for about $200 million of the $800 million in total announced by the three companies.
What if you are unable to pay your premiums?
Not sure how the bills are going to be paid? You’re not alone. If you are one of the millions who have been laid off, furloughed or are unable to work, Allstate and American Family Insurance are also offering payment relief.
Allstate and American Family Insurance stated that it will provide payment relief to eligible customers. Further, they will expand coverage for drivers using their personal vehicles to make deliveries.
Liberty Mutual is helping by not charging late fees or cancelations for its current customers. CEO David Long released a statement saying, “Today, more than ever, we recognize the uncertainty and financial challenges our customers are facing. We remain dedicated to serving our customers during this unprecedented pandemic.”
Allstate also added that they are providing identity monitoring as the nature of society has made most of us turn to digital ways of living.
Will other companies join in to help?
One of the biggest questions being discussed in the industry is whether any of the dozens of other providers will make a formal statement about offering increased assistance to their customers in this time of need.
Industry leaders State Farm have announced that they are closely monitoring automobile insurance claims and are considering how best to help their policyholders. The company says they expect to reach a decision by the end of the week.
Progressive states it is “exploring how to offer some premium relief to customers to reflect decreased exposure that comes with less frequent driving during the pandemic.”
Geico, a top insurance provider and owned by Berkshire Hathaway, has yet to comment or outline their plans for customers.
With fewer drivers on the road due to the shelter-in-place directive, industry experts project that the number of automobile accidents will drop by nearly 85% . With fewer accidents, fewer drivers, and fewer claims, the industry needs to help Americans however they can.
What if I am in an accident at this time?
Although the probability of an accident has decreased, any time you or someone you know drives, you are still at risk of an accident. With stress, illness, and irresponsibility on the part of other drivers, you still could be in harm’s way.
You shouldn’t have to handle what comes next alone. Our team is here remotely to help you or your loved ones should an accident occur. We have the expertise and knowledge to help you with your claim and the best next steps to take.
If you have been injured in an accident, you should contact an experienced attorney at Edward M. Bernstein & Associates. Even if you believe that you are responsible for the accident, you should speak to an attorney to determine the best course of action and to investigate whether other factors could have prevented the accident.
You can contact us 24/7 via phone at (702) 508-7334 for a free consultation. We are also available via chat or email.
If we stay apart and stay informed, together as a community we will get through whatever comes our way. From the team at Edward M. Bernstein & Associates, stay home, stay happy, stay safe.