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Coronavirus auto insurance refunds: Here’s what you need to know

COVID-19 (coronavirus) stay-at-home orders have led to fewer people on the road and many cars sitting in driveways. Now, most major auto insurance companies like State Farm, Geico and Liberty Mutual are offering policyholders economic relief in the form of refunds and credits to account for the time spent at home and off the roads.  The refunds are expected to save policy holders more than $6.5 billion over the next two months, according to the Consumer Federation of America.

Relief programs offered by auto insurers include refunds, credits or one-time payments. Most of these forms of relief require no action from the consumer and will be applied automatically through the policyholder’s recent payment method on file.

When policyholders will receive car insurance relief depends on the type of refund program offered by their auto insurer.  However,  most drivers can expect to receive relief anywhere between April and June.  If policyholders prepaid their premiums, they will be issued a credit.

Is YOUR insurance company participating in a relief program?

  • 21st Century: 25% discount on premiums in April
  • AAA: 20% refund between for policyholders with insurance in effect from March 16 to May 15
  • Allstate: 15% discount on premiums in April and May
  • American Family Insurance: $50 one-time payment for each car insured
  • Amica: 20% credit on April and May premiums
  • Auto-Owners Insurance: 15% refund on April and May premiums
  • Chubb: 35% discount on April and May premiums
  • Cincinnati Insurance and Casualty: 15% credit on April and May premiums
  • CSAA: 20% refund on two months’ premium
  • Encova: 15% discount on April and May premiums
  • Farmers Insurance: 25% credit on premiums in April
  • Geico: 15% percent credit for auto and motorcycle customers whose policies renew between April 8 and Oct. 7 and new policy purchases between that time frame
  • Hanover Insurance Group: 15% discount on April and May premiums
  • The Hartford: 15% refund on April and May premiums, only for policies in effect as of April 1
  • Liberty Mutual: 15% refund on two months of premiums, refunds begin starting April 7
  • Kemper: 15% credit on April and May premiums
  • MetLife: 15% credit on April and May premiums
  • Mercury Insurance: 15% credit on April and May premiums
  • Nationwide: $50 one-time refund per policy as of March 31; refunds will be credited automatically within 30 days to the current payment method on file
  • Next Insurance: 25% discount on April 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; credits will be applied automatically in May and June
  • Safeco: 15% refund on April and May premiums starting April 7
  • State Farm: Most customers will receive, on average, a 25% credit between March 20 through May 31; exact percentages vary by state; credits will be applied automatically as early as June
  • Travelers: 15% credit for April and May premiums
  • USAA: 20% credit on two months’ premiums; credits will be applied automatically
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