We hope you’re holding up as best you can during these interesting times. The coronavirus pandemic affects us all. We deeply appreciate you and want to help clients get through this crisis. We’re grateful so many of our auto insurance clients are doing their part to prevent the spread of COVID-19 by staying home. Since people are driving less, we’re seeing fewer auto claims. So we’re giving auto customers some relief on their bills.
Fewer drivers are on the road, which means fewer accidents. With this in mind, we are announcing our Personal Auto Customer Relief Refund, which will return approximately $250 million to our customers. Personal auto insurance customers will receive a 15% refund on two months of their auto premium, based on your premium amount as of April 7, 2020. We are planning to issue the refund in the manner you made your most recent payment or by check. Safeco will begin issuing refunds in the coming weeks after we have approval from state insurance regulators. Your refund will happen automatically, and you do not need to call us to get your refund.
Travelers has launched the Stay-at-Home Auto Premium Credit Program, which will automatically give U.S. personal auto insurance customers a 15% credit on their April and May premiums. It’s our way of supporting our customers, and we hope it helps ease some of the financial burdens many are experiencing.
Clients who pay by monthly installments will receive automatic credit on future bills. Clients who have already paid their billing account in full will receive a direct payment. We are working with regulators to obtain all the necessary approvals. The Stay-at-Home Auto Premium Credit Program is among several initiatives we have launched to provide relief during this challenging time. These include suspending cancellation and nonrenewal of coverage through May 15 – there will be no interest, late fees or penalties charged during this time. We are also accelerating more than $100 million of commission payments to eligible agents and brokers. And we have pledged $5 million to COVID-19 relief efforts to assist families and communities across North America, the United Kingdom and the Republic of Ireland.
Today we announced that we’re providing credits of approximately $1 billion in premium to Progressive personal auto customers as a result of fewer claims that come with less frequent driving. Subject to approval by state regulators, Progressive personal auto customers who have a policy in force as of April 30 will be credited 20% of their April premiums in May and personal auto customers with a policy in force as of May 31 will be credited 20% of their May premiums in June. We estimate that the sum of these two credits will total approximately $1 billion. We may offer additional credits in the upcoming months. You will not need to take any actions to receive the benefits. The credits will be applied automatically to your policy and those who have paid in full will receive a payment of the credited amounts. Clients will see it reflected in their accounts within a few weeks after month end.
If they have a balance on the policy, we’ll apply for the credit directly to the remaining balance. And if they’ve already paid in full, we’ll return the money to the payment account we have on file—please make sure your payment details are up to date.
Hartford will be issuing a 15 percent refund on two months’ worth of premium for all customers with an in-force personal auto policy as of 4/1/2020. Customers who pay the premium in installments will receive a credit toward their next payment. We are working with state insurance departments to approve these credits so we can pay them as quickly as possible. We plan to issue payments to customers either by check or direct deposit into the billing account on record. Customers do not need to take any action to receive this credit. This credit applies whether a customer pays in full or in installments. For customers having financial difficulty, we will waive late-payment fees and cancellations for non-payment. This applies to personal auto and home policies until May 31. We hope this grace period gives customers financial flexibility during this crisis.
Britton and Britton Insurance understands how difficult lives are right now. While auto insurance might not be the most pressing topic on everyone’s mind, we know that finances could be. We’ll continue to monitor the effects of the Coronavirus situation and share updates as more insurance companies make announcements.
In the meantime, be well and stay safe. Thank you for partnering with a local independent insurance agent. Our family appreciates you!