More auto insurers announced customer discount and rebate programs as traffic volume and claims declined dramatically due to stay-at-home orders.
Erie Insurance announced it will provide $200 million in dividends directly to personal and commercial auto insurance customers in the 12 states and the District of Columbia where the company does business. This immediate relief represents about 30% of related auto insurance premiums over a two-month period or 5% of their annual premium.
Erie is the 12th largest automobile insurer in the United States based on direct premiums written
Yesterday’s announcement is in addition to the $200 million in rate reductions announced earlier this month. Together these efforts provide a combined $400 million in immediate relief and longer-term rate reductions for ERIE auto insurance customers. This is in response to the significant decline in miles driven due to the stay-at-home directives for COVID-19.
ERIE plans to distribute checks to customers in mid-May 2020. There is no need for customers to call ERIE or their agent to request the payment. Checks will be mailed directly to customers with policies in force as of April 1, 2020.
“We are fortunate to have built up the financial strength we have over our 95 years that allows us to further support our customers during this challenging time,” said Erie Insurance President and CEO Tim NeCastro. “We stand by our customers during times of hardship and catastrophe and our response reflects who we’ve been for 95 years: a company that’s always there for our customers and a company that is truly Above All in Service.”
AAA
AAA insurers have announced relief packages that will refund more than $285M to auto policyholders.
AAA auto insurance policyholders insured through Auto Club Enterprises Insurance Group, AAA – The Auto Club Group, Motor Club Insurance Company in Rhode Island and CSAA Insurance Group are eligible for the refund. The refund comes in response to a reduction in miles driven and, as a result, an anticipated decrease in the number of insurance claims.
“Right now, we can all use good news. Where AAA can make that happen for our members facing difficult times – be it providing roadside service, rebooking a vacation or putting money back in wallets – AAA stands ready to assist,” said Marshall Doney, AAA president and CEO. “For over 100 years, we have been there for our Members and we will continue to be there as we