Car Insurance Refund COVID 19: Car owners across the country might be eligible for a refund of their annual car insurance costs because of the coronavirus outbreak.
The current lockdown means most drivers are paying for their cars while not actually using them but it may be possible to claim some of these costs back.
How To Get Car Insurance Refund COVID 19
Allstate announced its ‘Shelter-in-Place Payback’ which the company says will give its auto insurance customers more than $600 million in April and May. The company says on average, its personal auto insurance customers will get 15 percent money back based on their monthly premium during those two months. Allstate plans to automatically deposit money back through the customer’s payment method or through their mobile app, based on the customer’s preference.
Farmers Insurance is offering to reduce its customers’ April auto insurance premiums by 25%.
Geico is giving a 15 percent credit to its auto and motorcycle policyholders for policies set to come up for renewal between April 8 and Oct. 7, 2020. The company says the credit will also apply to new policies which are purchased during that period.
“The credit is part of our ongoing efforts to assist policyholders during this unprecedented time,” the company states on their website.
Liberty Mutual announced its Personal Auto Customer Relief Refund, saying it will give back around $250 million to its customers. The company says personal auto insurance customers will get a 15% refund on two months of their auto premium, based on the premium amount as of April 7, 2020. The refund will happen automatically and will be issued via the customers’ recent payment option or by check, the company adds.
Nationwide is offering its employees a one-time premium refund of $50 per policy for personal auto policies active as of March 31, 2020, due to the coronavirus pandemic. The company says the refunds will be automatically credited to the customer’s most recent payment method within the next 30 days.
Progressive says active personal auto policies at the end of April will receive a credit for 20% of their April premium due to the number of customers staying home during the pandemic. The company says it will offer the same credit to active personal auto customers for the end of May, saying they might extend the same credit in upcoming months.
State Farm announced Thursday that the company will be refunding up to a $2 billion dividend to its auto insurance customers “in an effort to help customers during these challenging times.” The company is also attributing the refund to the closures of schools and businesses, and with people sheltering at home, and says customers should see the dividend appear as a credit on their auto policy.
USAA made the announcement this week that it will be returning $520 million to members. Every member with an auto insurance policy in effect as of March 31, 2020, will receive a 20% credit on two months of premiums in the coming weeks, the company says.
In The United Kingdom What insurers are giving refunds?
While there has been a six-month break from MOTs, nothing has yet been announced around insurance costs.
In the US some insurers have started offering discounts of 15 per cent for policyholders.
There hasn’t been an equivalent announced in the UK but some insurers have said they may give refunds.
Direct Line, for example, which has more than five million customers and includes the brands Green Flag, Privilege and all the Nationwide insurance products, said it would consider refunds in some circumstances.
A spokesperson said: “If a customer believes that their mileage will be a lot lower than originally estimated at the start of their policy, they can contact us and we can process a refund.
“As long as you’re reducing mileage by at least 1000 miles annually, and you’re not already on a particularly low estimated annual mileage, a refund will generally be available.”
The insurer explained it has always been possible for customers to change their mileage mid-way through a policy but this is usually because of a permanent change in circumstances whereas at the moment it is likely to be a temporary one.
“Customers who have changed their estimated mileage for the year due to COVID-19 will not need to get back in touch with us to reverse the temporary change.
“To keep things simple for our customers we’ll automatically revert to their normal mileage from their next renewal date,” the spokesperson added.
But this isn’t the case with all insurers therefore it depends who you bought your insurance from.
We asked Aviva, for example, what the case was for policyholders.
A spokesperson said: “Premiums are calculated to cover expected costs over the 12 months of a customer’s policy.
“If a customer has a concern or is struggling to pay their monthly payment, then they should contact us by email or by telephone to discuss their circumstances.”
How do you ask for a refund on your policy?
Although no blanket changes have been made, it may still be worth contacting your insurer to ask the question if you feel your annual mileage will be far lower than estimated.
There is sometimes an admin fee for changing policy half-way through so it’s worth checking if one would apply if you do reduce your mileage.
A spokesperson for the Association of British insurers said: “Your motor insurer can advise on any options that may help reduce your premium, or if you are worried about being able to continue to pay premium instalments.
“Any premium adjustments or refunds will be a matter for individual insurers.”
However, there are no guarantees you will get a refund. Car insurers don’t have to pay them as you have entered in a contract for a year to pay for the policy.