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Thursday, 09 April 2020 20:16

GEICO, Farmers, Liberty Mutual Join Insurers Giving Breaks to Drivers, Businesses

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More auto insureds and small businesses are getting a break on their insurance premiums to help them through the coronavirus crisis.

Auto insurer GEICO said it will give back approximately $2.5 billion in the form of a 15% credit to its auto and motorcycle customers as their policy comes up for renewal between April 8 and Oct. 7. The credit will also apply to any new policies purchased during this period.

 

Farmers Insurance is giving a 20% discount to more than 115,000 of its business insurance customers. Liberty Mutual is refunding 15% of premium for two months to personal auto insurance customers.

 

GEICO’s average auto policy has a semi-annual premium of about $1,000 and generally covers more than one vehicle. This means GEICO expects credits to average about $150 per auto policy and $30 per motorcycle policy. The company estimates the benefit to its 18 million auto and 1 million motorcycle customers will be approximately $2.5 billion.

 

GEICO, the second largest auto insurer in the U.S., joins a growing list of insurers offering discounts to help customers during the coronavirus crisis, a time when insureds are driving less and there are fewer accidents.

 

“This ongoing crisis has widespread effects that will linger. That is why we wanted to give this credit for at least six months,” said GEICO President and CEO Todd Combs. “Our customers have been loyal, and we are committed to doing all we can to help them.”

 

Last month, GEICO announced it was pausing cancellations of coverage due to non-payment and policy expiration through at least April 30. Beyond that, the company has committed to offering maximum flexibility to policyholders who need special payment options, as well as transitioning nearly all of its associates to work from home to continue providing the 24/7 service it is known for.

 

Drivers are not alone in getting some insurance premium relief.

 

With many small businesses struggling as a result of stay-at-home orders, Farmers Insurance announced it will provide relief to more than 115,000 of its business insurance customers.

 

Farmers’ business customers in the restaurant, office, retail and service sectors across the country will receive a 20% monthly credit on their Business Owners Policy (BOP) for the next two months on their upcoming premium notices.

 

“We understand how challenging running a business can be, particularly in these extraordinary times, and we want our business insurance customers to know Farmers cares and we want to help,” said Sharon Fernandez, president of business insurance for Farmers.

 

This 20% monthly credit to their BOP policies is on top of other measures the insurer has already taken to help business insurance customers, including temporarily pausing policy cancellations due to non-payment, through May 1. Additionally, for all business insurance customers, Farmers is allowing extra time for business insurance customers to pay for their policies.

 

Current GEICO customers can expect to see the discount when they renew. The insurer said customers do not need to take any action to receive this credit.

 

Similarly, Farmers said restaurant, office, retail and service business insurance customers will see the credit effective on their policy automatically.


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