How new legislation, CARES Act will affect mortgages on your home during COVID-19 pandemic
State Farm said it will return up to $2 billion in premiums to its policyholders, the latest auto insurance company to reimburse customers due to the coronavirus pandemic.
In a statement, State Farm said its auto customers can expect to earn a credit of 25% on their premium between March 20 through May 31.
“We insure more cars than anyone and we see from our claims activity people are driving less,” said Michael L. Tipsord, chairman, president and CEO of State Farm, in a statement. “This dividend is one of the ways we’re working to help our customers during this unprecedented situation.”
On Wednesday, Progressive said it will provide approximately $1 billion to drivers because of fewer claims. The company said auto policy customers can potentially receive a 20% credit in April and May.
Auto insurers giving back: Allstate, Geico among insurers to give back millions
When are stimulus checks coming?: Money could roll out to Americans next week
“We understand how difficult and uncertain people’s lives are right now,” said Progressive president and CEO Tricia Griffith in a statement. “While auto insurance might not be the most pressing topic on everyone’s mind, we know that finances could be.”
The two companies join other top insurers across the country reimbursing premiums for consumers who are driving less frequently as the COVID-19 pandemic keeps them home. Allstate, Geico, Liberty Mutual, USAA and American Family Insurance all announced plans to return portions of premiums to consumers.
The plunge in driving will end up saving Americans money on their auto insurance as well as gas prices. The average price for gas nationwide is $1.88, according to AAA. Just one month ago, the average was $2.36.
Follow Brett Molina on Twitter: @brettmolina23.
Read or Share this story: https://www.usatoday.com/story/money/2020/04/10/state-farm-progressive-latest-auto-insurers-return-money/5128875002/