Auto insurers State Farm, Geico, others to issue refunds – PennLive

As most of America sits inside under stay-at-home orders due to the coronavirus pandemic, auto insurers are giving their customers credit back.

On Thursday, State Farm, the largest auto insurance company in the country, joined Allstate, Geico, Liberty Mutual, Progressive and others, in announcing refunds to its customers. State Farm said it will be returning a $2 billion dividend, with most customers receiving a 25 percent policy credit on premiums paid between March 20 and May 31.

“State Farm is returning value through a dividend to our customers,” State Farm Chairman, President and CEO Michael Tipsord said in a statement. “We insure more cars than anyone and we see from our claims activity people are driving less. This dividend is one of the ways we’re working to help our customers during this unprecedented situation.”

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The percentages refunded from State Farm can vary based on state, a press release said. Credits will be applied as soon as June.

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This model is similar to what other insurance companies are following at this time. Allstate, Liberty Mutual and Safeco said they will be offering 15 percent refunds on premiums; Geico will offer 15 percent credit on policies between now and October; Progressive and USAA will be offering a 20 percent credit in April and May.

In the release, State Farm said customers with financial challenges should call their agent, noting that they are working on providing payment options given the struggles facing the country right now.

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