Our continued goal is to be a reliable resource to the community for all things insurance. Below is an updated list of insurance carrier’s offering an auto insurance “Relief Fund.” Information is changing very rapidly so we’ll post updates as we verify them either through published media or internal communications from various carriers.
[UPDATED: 05/13/2020; 11:55 AM (PST)]
NatGen Premier auto policyholders in CA, will receive a total savings of 15% of premium from March 19th, to April 30, 2020. Beginning in June, customers receiving credits will be notified in the following way:
- Paid in full: Insureds whose premium is paid in full will receive a check in the mail with an explanation for the savings printed on it.
- Installments by mail: Insureds that receive their invoice via regular mail will have notice that the April savings is applied to the current installment printed on their paper bill.
- Electronic installments: Insureds on automatic payments will receive notice of the savings via email.
Specific information on the amount of your savings can be found on your portal at NatGenPremier.com and by clicking "Manage My Policy."
[UPDATED: 04/13/2020; 4:30 PM (PST)]
1. Updated list of carriers per Insurance Journal.
2. Also, note that while most if not all insurance carriers are in the process of offering a relief program or credit to their insureds for COVID-19 the CA Department of Insurance released a Bulletin today requiring broader premium reduction for other lines of insurance in addition to reductions for the private passenger automobile insurance line.
Insurance carriers ultimately have two options to abide by:
1. "They may refund premium without prior approval by the DOI if they apply uniform premium reduction for all policyholders in an individual line of insurance, for recent, current, and upcoming policy periods or any portion thereof. The amount of the across-the-board premium refund may be an average percentage based on estimated change in risk and/or reduction of exposure bases. Considerations relevant to determining the amount of an appropriate premium refund or credit, if any, may include distribution of policyholders across mileage bands or type of use of vehicle (such as pleasure use vs. commute use) for personal automobile insurance or, at a minimum, premium for a commercial policy."
2. "Alternatively, insurers may refund premium without prior approval by the Department of Insurance by reassessing the classification and exposure bases of affected risks on a case-by-case basis for recent, current, and upcoming policy periods or any portion thereof. Where there are risk misclassifications resulting in premium overcharges, insurers should immediately reclassify risks and refund premium. An example would be to reclassify a personal automobile exposure from “commute use” to “pleasure use” and to reduce the insured’s estimated miles driven for as long as the COVID-19 pandemic continues to substantially reduce the number of miles driven."
"Whether choosing one of the above-described approaches, or an alternative approach, insurers shall, no later than 120 days after the date of this Bulletin, provide each affected policyholder, if applicable, with a notification of the amount of the refund, a check, premium credit, reduction, return of premium, or other appropriate premium adjustment. In addition, insurers shall provide an explanation of the basis for the adjustment, including a description of the policy period that was the basis of the premium refund and any changes to the classification or exposure basis of the affected policyholder. The insurer shall further offer each insured the opportunity to provide their individual actual or estimated experience. For automobile policies, this includes an invitation to provide updated mileage estimates as appropriate."
Therefore, if you don't see your carrier on the list, fear not. This simply means that they haven't announced their program yet, or they will be adjusting your policy on a case by case basis. Compliance with this bulletin is expected within 120 days of announcement.
[UPDATED: 04/11/2020; 3:00 PM (PST)]
Updated list of carriers below.
[UPDATED: 04/09/2020; 1:00 PM (PST)]
Context: Over the past few days insurance carriers have decided to return money in the way of credits to its policyholders. This unprecedented event is due to the massive driving slump caused by massive shutdowns throughout the country. As individuals drive less frequently (decline of 35%-50% in most states) there are fewer accidents, fewer accidents equate to fewer claims, and thus a surplus in premiums being collected by the insurance companies. Each individual carrier is now evaluating and waiting for approval from the Department of Insurance on whether to offer a formal "Relief Fund" to their clients. As of late it seems that the top carriers with the bulk of market share have been releasing their gracious programs. Smaller more regional companies may not be able to release such a program, but will continue to work with individuals on a case by case basis. The average "Relief Fund" seems to be adhering to 15% of premiums for April & May, but there are others who are offering either a higher % or longer loss period. We'll continue to monitor these developing programs and as usual offer our recommendations for your individual circumstances.
Sources:
1.Progressive, Travelers, USAA Latest to Offer Insureds Discounts, Other Accommodations
2. Auto insurers refund customers after 'unprecedented' driving slump
3. GEICO to give customers $2.5 billion benefits
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Current Relief Funds:
NO ACTION REQUIRED FROM POLICYHOLDERS TO RECEIVE CREDITS*
*Credits are subject to Department of Insurance Approval - Approvals are currently pending for all Carriers*
Participating Carriers We Represent:
- Mercury - 15% credit for April and May premiums
- Metlife - 15% credit for April and May premiums
- NatGen Premier - 15% credit for March 19th - April 30th premiums
- Nationwide - $50.00 credit per policy as of March 30, 2020
- Nationwide Private Client - $50.00 credit per policy as of March 30, 2020
- Progressive - 20% credit for April and May premiums
- Safeco/Liberty Mutual - 15% credit for April and May premiums
- Travelers Insurance - 15% credit for April and May premiums
- More to come...
Participating Carriers We Do Not Represent:
- Allstate - Not Represented
- American Family - Not Represented
- Farmers - Not Represented
- GEICO - Not Represented
- State Farm - Not Represented
- The Hanover Insurance Group - Not Represented
- The Hartford - Not Represented
- USAA - Not Represented
Notes:
- For the most part, all carriers seem to be automatically crediting policyholders during their program loss period (I.E. April/May, some have extended their individual program period). Meaning credits will be issued at the normal billing cycles in May and June.
- These programs will depend on the length of the event, programs could be extended past May.
- Rest assured that if the company you’re insured with doesn’t release a formal program we can still work with you based on your individual circumstance.
Most Carriers:
- Late fee charges have been automatically stopped and cancellations due to non-payment have been temporarily paused for personal auto and home customers from March 23 through at least May 22, 2020.
- Extensions for payment are determined on an individual case by case basis.
- All personal auto policies have been expanded to cover customers who use their personal vehicles to deliver food and medicine. Standard personal auto policies typically exclude such coverage.
- This additional protection will likely remain in effect from March 16 to May 22, 2020, and claims reported by July 1, 2020.
* Carrier program details and offering may differ.
* The above timelines may be extended depending on circumstances and regulatory approvals.
Billing:
- If you or your family is being financially impacted by the COVID-19 outbreak, please contact our agency via email at Service@chunandreynolds.com or phone at 805-869-1700. We will advise the best course of action available. You will be provided with a Customer Service Phone number to your specific Carrier where you can discuss your options.
- Many Carriers are going to a 60-day deferment period for billing. These arrangements must be made with the Carriers Customer Service themselves, not through our Agency. Please also know that this does not mean the premiums during that period are waived, the premiums will be due at the end of the deferment period or potentially adjusted over the remainder of the policy period.
- Many Carriers are making every effort to apply reasonable flexibility and find creative solutions to keep your affected policies and coverage's in force.
Thank you and stay safe!
Vincent Chun and Greg Reynolds
Service@chunandreynolds.com
805-869-1700