Financial First Aid: Car insurance companies paying consumers back during pandemic

Financial First Aid: Car insurance companies offering refund to customers

CLEVELAND, Ohio (WOIO) - Millions of Americans are working from home or not working at all during the coronavirus pandemic.

And that means people are driving much less.

Because of that, some auto insurance companies are actually giving money back to their customers.

Here's what you need to know from several different car insurance companies to get your insurance pay back.

Allstate

Allstate recently announced it will refund about 15% of premiums paid by its customers in April and May.

If you're an Allstate customer, the company says customers will receive the money back through a credit to their bank account, credit card or Allstate account.

The fastest way for customers to receive this payback is to use the Allstate mobile app.

American Family Insurance

If you’re an American Family Insurance customer, relief payments will be sent out as a check.

American Family Insurance expects to complete the printing and distribution of all 2.3 million checks within 60 days.

Checks already started going out to customers in Wisconsin, where the company is based.

Payments to customers in the company's additional 18 operating states, including Ohio, will be sent out once they receive approval from state insurance regulators.

Both Allstate and American Family insurance companies said they're expanding coverage for customers who use their own vehicles to deliver food and medicine during the Covid-19 outbreak.

Geico

Geico is passing the savings on to its policy holders with a 15 percent credit on six month policies.

On its website, Geico provides this example: “if your policy is $1,000 for six months, your credit will be $150 at your renewal.”

Progressive

All Progressive customers will receive a 20% credit for April and May.

Progressive is waiving late fees, pausing collections, and holding off on canceling or non-renewing any active policies due to non-payment through May 15.

There’s nothing you need to do except make sure your payment details are up to date.

That's because if you already paid in full, the money will be returned to the payment account on file.

If you have a balance on your policy, progressive will apply the credit to your balance.

State Farm

Customers can expect to receive a dividend credit on average of 25 percent of premiums owed during March 20 and May 31, 2020.

State Farm says this works out to about $20 per month for each vehicle insured.

Credits will be applied automatically starting in June.

Other car insurance companies

Regardless of your insurance provider, experts say if you’re driving less or have lost any income you could be eligible for a premium reduction or deferment. Just call your insurer.

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