The COVID-19 pandemic is a rapidly changing story with many moving parts.
So we’d like to take one thing off your plate. Insurify is here to help you sort out what should matter to you in terms of your auto insurance coverage, and give you the context of why you should care about it.
Here’s our comprehensive guide to auto insurance companies’ responses to the coronavirus pandemic crisis, as well as different mandates from different states that may affect your driving habits and your monthly expenses.
If you’re financially struggling due to COVID-19, there’s no reason for you to be overpaying for something like car insurance. Make sure you have the best policy for the lowest price by comparing rates on Insurify today.
Does your car insurance rate reflect your current driving habits?
Table of Contents
- Auto Insurance Company Responses
- State Responses
- Other Important COVID-19 Resources
Auto Insurance Company Responses to COVID-19
Many auto insurance companies are offering policyholders discounts and lowered auto insurance premiums between April and June. Discounts vary based on your company, with some offering up to 35 percent off and others offering one-time payments to help with monthly expenses. Most companies are also holding off on late fees and refraining from canceling or pausing your policy because of things like non-payment.
Last updated 5/15/2020
|Insurance Company||COVID-19 Response|
|AAA||Starting April 30, AAA policyholders will receive a refund applied to two months of premiums for the months of April and May. AAA is also pausing cancellations for auto policies due to non-payment through May 31, 2020 and extending coverage for policyholders who use their vehicles to deliver food and medicine.|
|Alfa||Alfa is offering to temporarily suspend policy cancellations due to non-payment of premium and waive late fees for policyholders facing financial strain.|
|Alliance United||Alliance United’s personal auto customers who have a policy in force as of April 30 will be credited 15 percent of their April premiums in May. Customers with a policy in force as of May 31 will be credited 15 percent of their May premiums in June.|
|Allstate||Allstate is returning auto insurance policyholders 15 percent of their April and May premiums. This will be refunded to you through your bank account, credit card, or Allstate account.|
|Amica||Amica auto insurance policyholders will see a 20 percent credit on their auto premiums for April and May. Amica will also not cancel policies due to unpaid premiums or charge late fees through June 2, 2020.|
|Auto-Owners Insurance||Auto-Owners is giving a 15 percent premium refund to policyholders for the months of April and May.|
|Chubb||Chubb is giving policyholders a 35 percent premium reduction for the months of April and May. This will be applied on policy renewal.|
|Clearcover||All Clearcover policyholders with active policies as of April 30, 2020, will get a credit towards their May premium. Policyholders with active policies as of May 31, 2020 will also get a credit towards their June premium.|
|COUNTRY Financial||COUNTRY Financial is giving a 15 percent refund for two months of auto insurance premiums to its policyholders. It has also extended payment deadlines to prevent cancellations, late fees, and non-renewals. As of right now, you can extend your due date to June 1.|
|Dairyland||Dairyland is offering policyholders grace periods based on need. It is also extending personal auto policies to cover food delivery.|
|Direct Auto||Direct Auto customers with a policy in force as of April 30, 2020 will get a 15 percent credit on their April premium.|
|Elephant||Elephant insurance is reducing its auto insurance rates, which customers should see as they renew their policies over the coming months. New customers will apparently also benefit from this reduction. Additionally, Elephant has expanded auto insurance coverage for policyholders who use their personal vehicles to deliver food, medicine, and other goods for commercial purposes.|
|Erie||Erie insurance is returning auto insurance policyholders 30 percent of their monthly premiums for a two-month period. The company is also offering customers options such as delayed payment dates, adjusting installments, changing pay plans, and waiving penalties and fees.|
|Farmers||All Farmers auto insurance will receive a 25 percent reduction in their April premium. Farmers policyholders, both current and new, will also be able to use the Farmers telematics app, Signal, which may save them between 5-10 percent on their premium. New York, California, and South California residents are not eligible for the Signal program.|
|Founders||Founders is offering policyholders a grace period for payments.|
|GEICO||GEICO will be returning auto and motorcycle insurance policyholders 15 percent of their premium when they renew their GEICO policies. New policyholders will also get this credit. GEICO will also no longer cancel your policy if you’re unable to pay your bill or if your policy was set to expire. This policy will remain in place through April 30, or as directed by your state.|
|The General||The General is waiving late fees through May 15, 2020, for those who are going through financial issues. For such cases, The General can restore coverage within 90 days and with only 50 percent upfront payment of the monthly or renewal bill, and will spread the remaining balance across the duration of the policy. The General is also extending personal auto insurance coverage for those who are using their vehicles for food delivery services through May 15, 2020.|
|Grange||Grange’s personal auto policyholders will receive a 25 percent payback for the months of April and May. The company is also offering a grace period to pay premiums for policyholders who are experiencing financial difficulty.|
|Hallmark||Hallmark is waiving late fees and suspending non-payment-related cancellations through May 15.|
|The Hartford||The Hartford is giving auto insurance policyholders a 15 percent discount on two months worth of premiums.|
|Infinity||Infinity’s personal auto customers who have a policy in force as of April 30 will be credited 15 percent of their April premiums in May and customers with a policy in force as of May 31 will be credited 15 percent of their May premiums in June.|
|Liberty Mutual||Liberty Mutual is giving auto insurance policyholders a 15 percent refund for two months of personal auto premiums. The company is also offering extended payment deadlines and waiving fees for customers who are impacted by the coronavirus.|
|Mercury||Mercury is returning auto insurance policyholders 15 percent of their monthly auto insurance premiums in April and May.|
|Nationwide||Nationwide is giving auto insurance policyholders a one-time premium refund of $50 per policy.|
|National General||National General is providing a 15 percent credit on April premiums for personal auto insurance policyholders.|
|New Jersey Manufacturers||NJM is refunding 15 percent of the equivalent of three months of premium payments to its auto insurance policyholders. The company also won’t cancel policies due to non-payment through April 30, 2020.|
|Oregon Mutual||Oregon Mutual is placing a 30-day hold on cancellations for non-payment of premium for policyholders experiencing hardships related to COVID-19 and is waiving late fees.|
|Plymouth Rock||Plymouth Rock is giving policyholders a 25 percent credit on auto premiums from until stay-at-home orders are lifted.|
|Progressive||Progressive will credit auto insurance policyholders 20 percent of their monthly premium for April, May, and the coming months. Beginning April 1st, Progressive will also waive late fees, pause collections, and stop canceling policies due to non-payment.|
|Root||Root is offering policyholders a “Stay Home Driving Bonus” that gives policyholders a 10 percent discount if they reduce their driving by 20 percent in April and May. Make sure your app permissions are turned on, including location and motion permissions. You can check your permissions in the app by tapping Stay Home Driving Bonus.|
|Safeco||Safeco’s personal auto insurance customers will receive a 15 percent refund on two months of their auto premium, based on their premium amount as of April 7, 2020. It has also expanded all personal auto policies to cover customers who use their personal vehicles to deliver food, medicine, medical supplies, or medical equipment for a commercial purpose. This accommodation does not apply to drivers completing deliveries for a transportation network company or online only delivery platform.|
|Safe Auto||State Auto is reducing rates for select states—Ohio, Kentucky, Pennsylvania, Tennessee— by up to five percent. Additionally, the company will temporarily provide coverage for policyholders while they provide delivery services (restaurants, retailers, groceries, pharmacies, etc.) from March 20, 2020 through May 31, 2020.|
|Safety||Safety is giving its auto insurance policyholders a 15 percent Safety Personal Auto Relief Credit. Pending regulatory approval, any personal auto policyholder that has a policy in effect as of April 1, 2020 will receive the credit off their premium for the months of April and May.|
|Shelter||Shelter has extended the date for cancellations and non-renewals for lack of premium payment to May 31, 2020.|
|State Auto||State Auto customers with personal auto policies as of June 1, 2020, will receive a five percent reduction on their entire policy premium at their next renewal. Customers also have the opportunity to save an additional 10 percent right away by enrolling in the State Auto Safety 360 program.|
|State Farm||State Farm will credit auto insurance policyholders an average of 25 percent of their monthly premium from March 20th to May 31. Customers will see this credit applied against bills beginning in early June. Those who are facing financial difficulties and are unable to pay their State Farm bills can contact their agent to discuss payment options.|
|Travelers||Travelers is giving its auto insurance policyholders a 15 percent credit on April and May premiums. The company will not cancel or stop renewal of coverage due to nonpayment through May 15, 2020. Travelers will also not charge interest, late fees, or penalties during this time.|
|USAA||USAA will credit auto insurance policyholders 20 percent of their monthly premiums for the next two months. This credit will automatically be applied to every USAA auto insurance policyholder with an active policy as of March 31, 2020. USAA also won’t cancel auto insurance policies due to non-payment, through at least June 17, 2020. In addition, USAA auto insurance policyholders will have extended coverage for their vehicles if they’re using it to transport food, medicine, and other goods for commercial purposes.|
|Wawanesa||Wawanesa auto customers will receive a 15 percent credit of their premium from March 16, 2020 to April 30, 2020. The credit will begin to appear towards future payments during the month of May. Wawanesa is also extending personal auto insurance coverage for drivers using their vehicles for food, medicine, and other delivery services.|
|Westfield||Westfield's personal auto customers will receive a 15 percent credit of their eligible monthly auto premium for the months of April, May, and June 2020.|
|West Bend||West Bend is sending a one-time payment of $50 to Home and Highway policyholders who insured their vehicles with the company as of March 11, 2020.|
If your car insurance company isn’t offering you any discounts right now, it might be a good idea to shop around for a better deal. With Insurify, you can compare deals from up to 20 different car insurance companies within minutes. Try it out, it never hurts to check what’s out there!
State Responses to Driving in the Wake of Coronavirus
States have been taking different approaches to nearly every aspect of the coronavirus response—auto insurance mandates included. Many states are encouraging and even forcing auto insurance companies to provide policy refunds, rebates, or discounts to account for the decrease in driving during COVID-19 lockdowns.
If you think you might be eligible for premium relief or refund, contact your auto insurer directly, and check with local authorities to see if your state’s Insurance Commissioner is taking action to assist consumers during this time.
Last updated 5/19/2020
|State||COVID-19 Auto Insurance Response|
|Alabama||The state of Alabama has urged insurance companies to consider an immediate reduction in premiums and/or credit policyholders for reduced driving.|
|California||California’s Insurance Commissioner has ordered auto insurance companies to refund policyholders’ March and April premiums.|
|Colorado||Colorado has issued requests to insurance companies to credit a portion of premiums to policyholders for reduced driving habits due to stay-at-home orders.|
|Florida||Florida has extended the deadline for residents to file their Passenger Auto Policy Count (PPAC) quarterly survey from May to June.|
|Georgia||Georgia has urged policyholders to get directly in touch with their auto insurers to discuss potential premium refunds.|
|Hawaii||Hawaii-based insurers are now permitted to take action to assist policyholders without the risk of breaking unfair trade practice regulations.|
|Idaho||Idaho has encouraged all personal auto insurers to temporarily extend coverage on a personal auto policy to include coverage when the policyholder is engaged in delivering food, medicine, or other essential goods.|
|Illinois||The state of Illinois has extended previously issued suspensions of cancellations, non-renewal, and premium payments for consumer car insurance policies.|
|Michigan||Michigan has requested auto insurers to include specific information with policy forms seeking approval to provide refunds and premium waivers to customers.|
|New Hampshire||The state of New Hampshire has issued guidance on expedited reviews and application of specific Unfair Insurance Trade Practices laws for all lines of insurance, including car coverage.|
|North Carolina||North Carolina has provided new options to auto insurers regarding how to file COVID-19 related documents.|
|Ohio||Ohio has issued a notice to insurers regarding the process for product filings to allow premium relief to policyholders.|
|Oregon||Oregon has issued guidance on extending coverage for delivery drivers and other essential workers, offering rate reductions and mid-term payments for reduced driving habits during the lockdown.|
|Utah||Utah has requested that auto insurers work with customers by considering premium discounts and refunds and providing options for non-renewal and missed payments. They’ve also asked insurers to remain sensitive to issues with expired licenses as the Governor issued an emergency order suspending Utah’s vehicle, vessel, and trailer registration laws.|
|Vermont||Vermont has provided consumers with a list of companies offering premium credits, dividends, or rate relief plans.|
|Washington||Washington has provided a list of auto insurers offering discounts to customers based on reduced driving.|
Times are changing, so are insurance rates - do you have the cheapest insurance available?
Related Reading: Other Important COVID-19 Resources
Want to learn more about how the COVID-19 pandemic might impact your insurance policies? Read more from the Insurify blog on how to smartly and sustainably save in this unprecedented time.
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Frequently Asked Questions: COVID-19 and Car Insurance
Can I get a refund on my car insurance premium since I am not driving due to COVID-19?
Possibly. Depending on your car insurance provider and the state you live in, auto policyholders may be eligible for a refund or premium discount for March, April, May, and even June premiums. Some companies have also made telematics programs immediately available, so you can get charged based on your new, reduced driving. The auto insurance industry has been upended by the coronavirus pandemic, so when you call your insurance agent to request information about their relief program, be patient as call volumes may be very high.
Since I am driving less than normal, should I cancel my auto insurance policy to save money?
The short answer is no, you shouldn't cancel your auto insurance policy. While you might think you're saving money in the short term, you’re probably going to lose a lot more in the long run. On average, canceling your policy will cost you $178 between DMV fees and losing out on any potential discounts for having prior insurance. Additionally, once you do reinstate your insurance policy, your average monthly cost will increase by 23 percent. And don’t forget, driving without insurance is illegal!
What penalties might I face in the future for canceling my car insurance policy during this time?
If you choose to cancel your car insurance during this time, you’ll likely face repercussions in the long run. When you apply for a new policy after stay at home orders are lifted and life returns to normal, you’ll have a lapse in your coverage. Lapses can cause premiums to increase as they raise a red flag to auto insurers. Seriously consider these consequences if before canceling your auto insurance.
Protecting Yourself and Your Wallet Amidst COVID-19
Auto insurance policyholders around the country may be entitled to rebates and/or extended grace periods as a result of the COVID-19 pandemic. Check with your local authorities and insurance company to see if you’re eligible for financial relief on your car insurance during the coronavirus pandemic.
And don’t forget, if you’ve realized you’re paying too much for your car insurance coverage, use Insurify to compare dozens of quotes from top companies in minutes.