Coronavirus relief: Allstate, USAA extend customer refunds for insurance policies through June

As Americans drive less because of the coronavirus pandemic and there are fewer accidents, Allstate announced Tuesday it is extending its shelter-in-place payback program through June.

Allstate was the first major insurance company to announce in April that it would give its car insurance policyholders a credit of about 15% of monthly premiums because of the pandemic for April and May. That same credit is extended through June 30.

Geico, State Farm, Progressive and many others have been offering car insurance relief to customers because of COVID-19. 

“While more people are back on the roads, the numbers of less severe accidents are below historical levels, so the payback will continue through June, representing approximately $1 billion back to customers over three months,” Allstate President and CEO Tom Wilson said in a statement.

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Allstate said in a news release that its personal insurance customers, along with Esurance and Encompass, will receive an automatic credit to their accounts. Most will receive 15% of their monthly premiums.

Allstate also will offer free identity protection for the rest of the year to all U.S. residents even if they are not customers if they sign up before June 30 at www.allstateidentityprotection.com.

USAA announced last month that it had extended its COVID-19 relief and was returning an additional $280 million to customers with policies in effect as of April 30. Policyholders are getting a third month’s premium credit of 20% credit, USAA said.

Other insurers also say they are giving customers a break.

In a statement to USA TODAY Tuesday, Geico said its “Giveback credit,” first announced in April, goes beyond the two to three months its competitors are offering “to extend to the full-term of the policy, which is at least 6 months.”

“We were concerned that a credit for just a few months might just expose our customers to large catch-up payments once events returned to normal,” Geico said.

Nationwide is monitoring driving frequency and other trends to determine what additional relief may be necessary, said Joe Case, a company spokesman.

Nationwide has extended assistance through June 15 for the waiver of late fees, “acceptance of hardship and billing holds” and is “continuing to allow reinstatements for up to 60 days without a lapse in coverage,” Case told USA TODAY.

Meanwhile, State Farm announced last week that it is reducing insurance rates in every state. The company says the national average for those rate reductions is 11% and will save customers $2.2 billion.

“Current State Farm driving data and claims experience show a considerable decline in miles driven and fewer accidents,” said State Farm Senior Vice President Kristyn Cook-Turner in a news release. “As a result, we’re looking for ways to continue supporting our customers while we monitor and adjust to trends.”

MetLife Auto & Home said in a statement to USA TODAY that the company will make price adjustments “as driving and claims experiences continue to evolve.” It also is offering payment leniency through the end of June.

Follow USA TODAY reporter Kelly Tyko on Twitter: @KellyTyko