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Wednesday, 05 August 2020 22:25

USAA to Return an Additional $270 Million to Members, Totaling More Than $1 Billion in Dividends

USAA, the country’s fifth largest property-casualty insurer, is returning an additional $270 million dividend to auto insurance policyholders.

This follows earlier announcements that USAA would provide dividends totaling $800 million to its members as a 20% credit on three months’ worth of premiums.

 

This new, additional dividend will reflect 10% of up to two months’ worth of premiums, and will be provided to all auto insurance policyholders with policies in effect within the months of June and July.

 

In total, USAA has now committed to returning $1.07 billion in dividends to all auto insurance policyholders due to continued fewer drivers on the road.
 
“Giving money back to our members, especially now when budgets are stretched, is another way we are helping,” said USAA President and CEO Wayne Peacock. “We see that members are driving less than when the pandemic hit. As these patterns unfold, we are adjusting our auto insurance rates.”
 
As a member-owned association, USAA historically returns a portion of profits to members. In 2019, USAA and various subsidiary companies returned nearly $2.4 billion in dividends, distributions and bank rebates and rewards. This brings the total amount returned to members since January 2019 to over $3.4 billion.

 

Dividends have been returned for the prior announcements of $800 million, and members have already received credits to their accounts. Similarly, members will automatically receive the additional dividend as a credit applied to their auto and property insurance account in late August. Members do not need to call, and no further action is required to receive the dividend.

 

The return of auto dividends, which impacts more than 7 million members with auto insurance, is just one of the many steps USAA is taking to provide financial assistance during this time. USAA continues to provide COVID-19-related financial relief to its members through an array of programs including:

 

  • USAA Property and Casualty Insurance is offering special payment arrangements on property and auto insurance. Members can extend past-due insurance payments over a 12-month period.*
  • USAA Property and Casualty Insurance is offering extended auto coverage for members using their personal car to deliver food, medicine and other goods for their employers because of business operations changes due to COVID-19.**
  • USAA Bank is offering payment assistance programs available for eligible members on credit cards, consumer loans, mortgages and home equity loans and lines of credit. We are also providing specific assistance for deposit accounts.
  • USAA Bank, for active member deposit accounts, is temporarily helping to ensure members with negative balance accounts have access to their CARES Act stimulus funds.
  • USAA Life Insurance Company is offering special payment arrangements on health and life insurance policies.***

 

Additionally, USAA has taken steps to help its employees stay safe and continue to serve members by enabling nearly all 35,000 employees to work from home through 2020.

 

USAA and The USAA Foundation, Inc. has committed more than $10.7 million to nonprofits across the country responding to the coronavirus pandemic by donating to military-focused nonprofits and nonprofits in USAA campus communities.
 
More information is available here.

 

*Available for a limited time. Some restrictions apply. Offer may vary by location.
 
**Coverage does not apply to delivery through a Transportation Network Company app-based delivery.
 
***Options may vary by state and may be subject to state regulatory requirements.

 

Source: USAA

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