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You are here: Home / News / Progressive, Farmers and Travelers Join List of Auto Insurers Offering Credits and Rebates to Policyholders

Progressive, Farmers and Travelers Join List of Auto Insurers Offering Credits and Rebates to Policyholders

April 9, 2020 By CollisionWeek Editor

Another three of the top 10 auto insurers have launched programs to provide credits or refunds on auto insurance premiums during the coronavirus crisis. Progressive Insurance, the third largest private passenger auto insurer in the U.S.; Farmers Insurance, the sixth largest auto insurer, and Travelers, the tenth largest auto insurer, announced programs over the past 24 hours.

Farmers also announced discounts on its business owners insurance policies that will be applied to upcoming premium notices.

The three auto insurers join Allstate and American Family, that CollisionWeek reported on Tuesday, launched programs and GEICO and Liberty Mutual that also launched customer premium relief programs earlier this week.

Progressive Insurance is providing approximately $1 billion to them as a result of fewer claims that come with less frequent driving.

 Progressive logo“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,” said Progressive President and CEO Tricia Griffith. “Always guided by our core values, doing the right thing is vitally important to us. We know that by sticking together and taking care of one another during these difficult times, we’ll come through this stronger. We want our current customers to remain our future customers.”

Subject to approval by state regulators, Progressive personal auto customers who have a policy in force as of April 30th will be credited 20% of their April premiums in May and personal auto customers with a policy in force as of May 31st will be credited 20% of their May premiums in June.  We estimate that the sum of these two credits will total approximately $1 billion.  Customers will not need to take any actions to receive the benefits. The credits will be applied automatically to the customers’ policy and those customers who have paid in full will receive a refund of the credited amounts.

Farmers and 21st Century branded auto customers will receive a 25% reduction in April premium to reflect the changed driving environment resulting from various stay-at-home guidelines issued across the country. The national insurer has also implemented flexible payment plans and a temporary pause on cancellations to help relieve some of the financial stress being felt by customers.

Farmers Insurance logo“We are committed to helping customers during this unprecedented time. Building on our Farmers Cares initiative to assist customers, all Farmers auto customers will receive a 25% premium reduction for the month of April,” said Jeff Dailey, chief executive officer of Farmers Insurance. “As we continue receiving updated information in the coming weeks, we’ll assess additional ways to take care of our customers.”

Farmers Insurance also announced it will provide additional relief to more than 115,000 of its business insurance customers under its Farmers Cares initiative.  Business customers in the restaurant, office, retail and service sectors across the country will receive a 20 percent monthly credit on their Business Owners Policy (BOP) for the next two months on their upcoming premium notices.

“We understand how challenging running a business can be, particularly in these extraordinary times, and we want our business insurance customers to know Farmers cares and we want to help,” said Sharon Fernandez, president of business insurance for Farmers. “For the next two months, many of our business insurance customers will see a 20 percent premium reduction.”

Travelers is giving U.S. personal auto insurance customers a 15% credit on their April and May premiums through its new Stay-at-Home Auto Premium Credit Program. The company will automatically credit customers’ accounts, providing them with prompt and much needed relief during this time. Travelers will continue to assess the program as more information comes to light about the impact of the COVID-19 crisis on the driving environment and auto claims.

Travelers logo “Our customers are doing their part to stay at home and help stop the spread of COVID-19,” said Alan Schnitzer, Chairman and Chief Executive Officer of Travelers. “Our new program recognizes their contribution to the effort we all need to make to protect our health and safety and the resulting decrease in miles driven and auto claims. We are committed to standing with our customers, agents and brokers, and this is one more step we’re taking to help ease some of the financial burden many are experiencing.”

The company is working with regulators to obtain all the necessary approvals.

Separately, Travelers continues to provide auto coverage for customers across the country whose job responsibilities now include using their personal vehicles to make food, grocery, pharmacy and medical supply deliveries.

The Stay-at-Home Auto Premium Credit Program adds to the company’s COVID-19 response initiatives. Among other things, Travelers is offering billing relief to customers, is accelerating more than $100 million in commission payments to eligible agents and brokers and has pledged $5 million to assist families and communities affected by the COVID-19 pandemic across North America, the United Kingdom and the Republic of Ireland. The company also continues to work with individuals experiencing financial hardships to offer solutions based on their unique circumstances.

Filed Under: News Tagged With: Auto Insurance, Coronavirus, Premiums

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