Geico Announces Billions of Dollars in Premium Credits for Auto Insurance Customers
Geico has announced it will offer more than $2 billion in premium credits back to its auto and motorcycle insurance customers, as the number of drivers on the road continues to decline due to shutdowns related to the coronavirus pandemic.
On Tuesday, Geico said each of its auto and motorcycle policyholders will receive a 15 percent credit when their policies renew between April 8 and Oct. 7, 2020.
Per Geico, the credit also will apply to new policies sold during that period of time.
The company said the credits would total around $2.5 billion, and estimated its customers could expect the credits to be around $150 for auto policies and $30 for motorcycle policies.
Geico has also announced it will also temporarily cease canceling insurance policies for nonpayment during the coronavirus pandemic.
“We paused cancellation of coverage due to non-payment and policy expiration through at least April 30, 2020 or later as directed by your state,” the company said.
As part of our ongoing efforts to assist customers during this unprecedented time, GEICO is providing a 15 percent credit to auto and motorcycle customers as their policy comes up for renewal between April 8-Oct 7. Customers do not need to take any action to receive this credit.
— GEICO (@GEICO) April 7, 2020
“This pause is automatic for policyholders. We hope that this can provide some peace of mind to you.”
The company first announced it would not suspend policies for nonpayment last month in a statement from Geico president and CEO Todd Combs.
“This ongoing situation impacts everyone, and we want our policyholders to have some peace of mind knowing we’ll be there when they need us most,” Combs said on March 25.
Liberty Mutual Insurance announced a rebate policy similar to Geico on Tuesday.
In a media release, Liberty Mutual said it would give its auto insurance customers a 15 percent refund on two months of their annual premiums.
The company estimated roughly $250 million would fall back into the hands of customers of its Liberty Mutual and Safeco brands during the COVID-19 health and economic crisis.
“For more than a century, we’ve made it our goal to be there for people when they need us most,” Liberty Mutual CEO David Long said.
“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, and we hope our premium relief and other actions we have taken to offer support help to alleviate some of their worries,” Long added.
Geico and Liberty Mutual follow auto insurers Allstate and American Family Insurance company in announcing rebates for customers.
Allstate announced Monday it would return more than $600 million in premiums to its auto customers.
“Allstate has been helping customers overcome catastrophes for 89 years since our purpose is to make sure they are in Good Hands. We have learned to move quickly and put people first,” Allstate CEO and president Tom Wilson said in a news release.
Through a “Shelter-in-Place Payback,” the company announced all customers would receive financial relief for the months of April and May by way of a 15 percent refund of their monthly premium.
The American Family Insurance company, meanwhile, announced it would return around $200 million to its customers.
Car and Driver reported fellow major insurer State Farm is considering a similar move to help financially burdened customers.
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