A number of auto insurers rolled out discounts to customers this week as Nevadans spend more time in their homes than on the road, leading to a drop in claims.
Travelers, Geico, State Farm and Progressive are some of the major insurance firms offering reduced premiums, flexible payment options and other programs.
Some firms, like State Farm, are automatically passing savings to customers, but others require consumers to contact their local agent.
State Farm said Thursday that policyholders will automatically receive an estimated 25 percent credit on premiums due from March 20 through May 31. The exact percentage customers should see on their statement will vary by state. It’s unclear what the discount will be for Nevadans.
The move is part of the company’s Good Neighbor Relief Program, which includes customer payment options and neighborhood philanthropic relief.
In total, the Bloomington, Ill.-based firm expects to return $2 billion to its auto insurance customers, making it the single largest dividend paid to customers in the company’s history.
“We see from our claims activity people are driving less,” State Farm Chairman, President and CEO Michael Tipsord said. “This dividend is one of the ways we’re working to help our customers during this unprecedented situation.”
Progressive is offering its customers a 20 percent credit for their April and May premiums, and those credits will be applied automatically in May and June. For those who have a balance on their policy, Progressive will return the money to the payment account on file, so customers should make sure payment details are up to date.
Also, from April 1 through May 15 the insurer will waive late fees, pause collections and hold off on canceling or not renewing active policies because of nonpayment.
Geico said Tuesday that it will give back an estimated $2.5 billion to its auto and motorcycle customers and issue a 15 percent credit for the entire six months of policies that are up for renewal between April 8 and October 7. It estimates that $150 per auto policy and $30 per motorcycle policy will be returned to each customer. The credit will also apply to new policies purchased within that time frame.
Travelers introduced a Stay-at-Home Auto Premium Credit Program giving policyholders a 15 percent credit on their April and May premiums, which will be applied to their accounts automatically.
“Our customers are doing their part to stay at home and help stop the spread of COVID-19,” Alan Schnitzer, chairman and CEO of Travelers, said in a statement. “Our new program recognizes their contribution to the effort we all need to make to protect our health and safety and the resulting decrease in miles driven and auto claims.”
Farmers Insurance said it will automatically reduce car insurance premiums by 25 percent for April.
Mercury Insurance announced it will automatically give 15 percent of monthly auto insurance premiums back to clients in April and May.
Meanwhile, Allstate, Liberty Mutual, USAA and American Family Insurance said they also will return portions of customers’ premiums to their account.