More and more auto insurance companies are jumping on Allstate’s decision earlier this week to reimburse up to $ 600 million in premiums to customers as people drive less because of coronavirus outages.
This is also good news from the governor.
Governor Phil Murphy announced today that New Jerseyans who cannot pay their insurance bills due to the coronavirus pandemic will receive much needed help.
He signed an executive order extending the grace period for those who cannot pay their health or dental insurance premiums by 60 days. And those with home insurance, auto insurance, tenant insurance, life insurance, insurance premium financing agreements – and more – will have a 90-day grace period, said Murphy.
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“No New Jerseyan should lose their insurance during this emergency,” said Murphy in a tweet announcing the decree.
Last month, consumer groups asked insurers to reimburse premiums because people drive less.
Here’s a look at what New Jersey’s largest auto insurers plan to do. Not all of them said they planned to refund premiums.
Most said they were awaiting regulatory approval from the N.J. and the other states in which they operate.
Allstate said Wednesday that customers would receive what they call “refunds in place”, promising that $ 600 million would be returned to customers over the next two months.
“It’s fair because less driving means fewer accidents,” said Tom Wilson, president, president and chief executive officer in a statement.
The company said most customers would receive 15% of their monthly premiums in April and May via credit to their bank account, credit card, or Allstate account.
Farmers and customers of 21st century auto customers would receive a 25% reduction in their April premiums “to reflect the new driving environment resulting from various stay-at-home directives issued across the country” .
“We are committed to helping customers during this unprecedented period,” said Jeff Dailey, CEO of the company. “As we continue to receive updated information in the coming weeks, we will evaluate other ways to take care of our customers. “
Geico has not yet announced that it will refund the premiums.
He said he was “suspending the cancellation of coverage due to non-payment and expiration of the policy”, and will remain in effect until April 30.
The company said it offers special payment plans to those who need them when normal billing operations resume.
“This ongoing situation has an impact on everyone and we want our policyholders to have some peace of mind knowing that we will be there when they need us most,” said Todd Combs, President and Chief Executive Officer from GEICO.
Liberty Mutual said it would give Liberty Mutual and Safeco personal auto insurance customers a 15% refund over two months of annual premiums.
This represents approximately $ 250 million, the company said.
“Today, more than ever, we recognize the uncertainty and financial challenges facing our customers,” said David Long, CEO of Liberty Mutual.
Customers will receive a 15% two-month refund of their annual auto premium starting April 7, 2020, pending regulatory approval, the company said. Refunds are expected to begin in April and will be made either by check or the way the customer made their last payment.
Payments will be made automatically so customers don’t need to take action.
New Jersey Manufacturers (NJM)
NJM has not yet decided to reimburse the premiums, but said it was doing everything it could to help the insured.
It has imposed extended payment terms and offers special payment plans upon request.
Plymouth Rock did not respond to our requests for comment.
Progressive said it would bring in about $ 1 billion (not a type-o) to customers because there are fewer claims because people drive less frequently.
“We understand how difficult and insecure people’s lives are right now,” said Tricia Griffith, President and CEO of Progressive. “Although auto insurance may not be the most pressing issue on everyone’s mind, we know that finance could be. “
The company plans to credit 20% of premiums from April to May for those with policies in force as of April 30. Those with a policy in effect as of May 31 will receive a 20% credit in June.
Customers will not need to take action.
“The credits will be applied automatically to customer policy and customers who have paid in full will receive a refund of the amounts credited,” said the company.
State Farm said there is an obvious impact on driving habits due to government restrictions.
He announced a “dividend of up to $ 2 billion that will go to his auto insurance customers.”
“With schools and businesses closed and many of us taking refuge in our homes, people are driving less now, so we are delivering value to customers because we anticipate fewer auto claims,” the company said. .
Customers do not need to take any action to receive this dividend, which will appear as a credit on their auto policy, he said.
He also said that, on average, auto customers will receive about 25% premium credit for the period March 20 to May 31, but the exact percentages will vary by state. Customers will receive credits applied to invoices from June, the company said.
“We will continue to monitor our loss and respond appropriately,” said the company.
Travelers have indicated that customers will receive a 15% credit on their April and May auto insurance premiums.
The company said it would automatically credit customer accounts, “providing them with much-needed, quick relief during this time.”
“Our customers are doing their part to stay at home and help stop the spread of COVID-19,” said Alan Schnitzer, President and CEO of the company. “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 claims for kilometers traveled and cars.”
The USAA has announced that it will return $ 520 million to its members.
“This payment is the result of data showing that members are driving less because of the advice to stay at home and stay locally across the country,” said the company. “Each member with an auto insurance policy in effect on March 31, 2020 will receive a 20% credit over two months of premiums in the coming weeks.”
Members will automatically receive credit applied to their bill, he added, noting that no one needs to take action to collect the money.
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