Some Insurance Companies are Giving Customers Credits

LOUISVILLE, Ky. — Fewer cars on the road right now due to many Kentuckians staying “healthy at home” means fewer accidents and other reasons to file a claim with auto insurers. So some companies are paying it forward.

“They’re just not using their automobiles so it was a great time to figure out how to say thank you to our great customers,” said President Mark Haney with the Kentucky Farm Bureau (KFB). KFB is considered the “voice of agriculture” in the Commonwealth, but it also offers auto insurance to its members. Haney said claims are down about 25 percent.

“Traffic seems to flow better, and we’re just seeing less accidents out there,” Haney said.

To give back, KFB is sending a $25 dividend to its auto policyholders. With approximately 840,000 vehicles insured across Kentucky, Haney said that’s about $21 million back.

“If you have one vehicle you get $25. If you have two, you get $50, and if you have three or four you get the appropriate amount,” Haney explained.

In a competitive industry, KFB isn’t the only auto insurer offering money back due to fewer claims during the coronavirus pandemic.

Here is a list of others:

  • State Farm – Most customers will see a 25 percent policy credit automatically applied to their premiums owed between March 20 – May 31, 2020.
  • GEICO – Automatically giving a 15 percent credit for the next 6-month or 12-month policy term purchased.
  • Progressive – All customers will receive a 20 percent credit for April and May 2020.
  • Allstate, Farmers21st century and USAA are also issuing credits with info on their websites.

All money back in the hands of consumers one way or another. However, KFB opted to mail checks versus apply for credit.

“We thought…if we want to give back let’s give a check. Let’s give a check to our customers. Let them cash the check, and they’ll have money in their pocket right there to do something with,” Haney said.

If your auto insurer isn’t listed, simply check their website. If you don’t find anything, call your auto insurance company or your agent because it never hurts to ask.

Some auto insurers are also offering expanded coverage right now at no additional charge for customers using their vehicles for a commercial purpose, such as delivering food or medicine. If you’re doing this check with your auto insurer to see if you’re automatically covered.