Many things have changed in the world since the COVID-19 outbreak. Schools are closed, places of business and worship are closed, and life as we know it will forever be different. One of the most noticable changes has been just how little we are driving our cars. Because of the governor's Stay Home, Save Lives initiative, unless we are going to the grocery store or pharmacy, we are, largely, staying put. While cars used to average 18-25 mpg, people are now joking that their cars are getting "four weeks to the gallon"! Although most auto insurance is not pay-as-you-go, many people felt like auto insurance rates should go down as a result. To be sure, auto insurance is complicated, and rates have to go through a detailed approval process in order to be changed, however, we are happy to report that several carriers have announced refund and credit programs for their customers!
Below is the current list (as of 4/27/2020) of Michigan auto insurance carriers and how they have responded*:
Citizens - 15% credit on April and May auto insurance premiums
Safeco - 15% refund on two months of auto insurance premiums
Progressive - 20% credit on April and May auto insurance premiums
State Auto - 5% discount on entire next auto insurance policy term
Frankenmuth - 15% refund for April and May auto insurance premiums
Liberty Mutual - 15% refund on two months of auto insurance premiums
Secura - 15% refund of April and May auto insurance premiums
Farmers - 25% reduction of April auto insurance premium
National General - 15% credit to April auto insurance premiums
Grange - 25% credit for April and May auto insurance premiums
GEICO - 15% credit on auto and motorcycle premiums
USAA - 20% credit on two months of auto insurance premiums
Travelers - 15% credit for April and May auto insurance premiums
Nationwide - one-time $50 refund
AAA - 20% refund for April and May auto insurance premiums
Meemic - 20% refund of two months of auto insurance premiums
Fremont - 20% refund for April and May auto insurance premiums
Cincinnati - 15% credit for April and May insurance premiums
Chubb - 35% auto insurance premium reduction for April and May
Farm Bureau - $25 restaurant voucher to a local restaurant
Pioneer - 15% credit on two months of auto insurance premium
Hastings - 15% refund on March and April auto insurance premium
Auto Owners - 15% refund for April and May auto insurance premiums
State Farm - average 25% policy credit on auto insurance premiums from March 20 through May 31
Allstate - 15% refund on April and May auto insurance premiums
Encompass - 15% refund on April and May auto insurance premiums
We will update this list as we have more information.
Many carriers are also offering payment and billing assistance. We have seen billing options such as skipping a payment and dividing that payment over the remaining payments, skipping a payment and doubling up on the next payment, and skipping a payment and having a double payment at the end of the current policy term. We have also seen carriers suspend policy cancellations and waive late fees.
There is a lot of uncertainty in today's world. It is nice to have these small glimmers of hope to help ease the burden that the novel coronavirus has created.
Don't see your carrier listed? Have a question? Want a quote? Call us anytime at (248) 531-8300!
Levin Insurance Agency
Many Options, One Choice
*We do not represent all of these carriers. All of this information was gathered from each carrier's website and all of these programs are subject to change, subject to certain guidelines, and subject to approval by the each state's department of insurance.