What You Should Know About COVID-19 Car Insurance Refunds

What You Should Know About COVID-19 Car Insurance Refunds

We are living in strange times. The COVID-19 pandemic has prompted stay-at-home orders nationwide to help slow the spread of the new coronavirus, leaving most Americans sedentary. With fewer people working and socializing in public, U.S. roads are far emptier than usual. Car insurance companies have responded in kind, offering concessions such as discounts and refunds to their customers to balance out the decrease in insurance claims.

Our Kansas City car accident lawyers explain what you can expect from Missouri’s most popular insurance carriers.

Who Is Getting Relief & When?

According to the Consumer Federation of America (CFA), companies that sell more than 82% of auto insurance policies in the U.S. will be providing refunds or credits to their customers in the coming weeks and months. Car insurance consumers nationwide will receive a total of over $6.5 billion in relief.

Relief programs vary from refunds to credits to one-time payments. In most cases, no action is necessary on your part—the relief will be applied to your account automatically using the information your insurance company already has on file. Based on the type of relief offered by your car insurance company, you can expect to receive your credit or refund sometime between April and June.

Car insurance companies providing relief include:

  • Auto-Owners Insurance: The company is providing a 15% refund on April and May premiums.
  • Allstate: 15% discount on April and May premiums.
  • Farmers Insurance: 25% credit on premiums in April.
  • Geico: 15% percent credit for car and motorcycle owners whose policies renew between April 8 and October 7 of this year, as well as new policy purchases between that time frame.
  • Liberty Mutual: 15% refund on two months of premiums.
  • Progressive Insurance: 20% credit for April premiums for each car insured as of April 30; 20% reduction on May premiums for cars insured as of May 31. The credits will be applied automatically throughout May and June.
  • State Farm: Most customers will receive approximately a 25% credit between March 20 through May 31—exact percentages vary by state.
  • Travelers: 15% credit for April and May premiums.

For more information, feel free to call our law firm or view the CFA's report card on auto insurance relief.

Have you been in a car crash? The Kansas City car accident attorneys at Sanders.Law can help. We remain fully operational during this time. Our staff and attorneys are working remotely and are available to chat online, through email, or over the phone. Contact us today!

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