7 car insurers offering refunds and discounts during the coronavirus pandemic

• With Americans driving less, having fewer car accidents, and making fewer claims, car insurance companies are seeing a surge in profits.
• Some insurers are giving refunds or discounts to customers as a result, including major insurance companies GEICO, Allstate, and Liberty Mutual.
• If your insurer isn't offering a refund or discount, there are still ways to save, including asking for a rate reduction or cutting back on unnecessary coverage.
• This story is being updated as information becomes available.
• Read more personal finance coverage »

Car insurers have seen big benefits from the stay-at-home orders during the coronavirus pandemic. With fewer people commuting to and from work, there are fewer accidents and fewer claims to pay out.

Some insurers are taking steps to make sure customers aren't overpaying for a policy they're unable to use. Several large insurers, including Allstate, GEICO, and Liberty Mutual have announced refund programs for customers.

If your insurer isn't yet on the list, it's still worth getting in contact with your insurance company. Your insurer may be able to reduce your rate if you're driving fewer miles. Canceling your policy generally isn't the right move, but you may also be able to remove certain coverage types you no longer need. Additionally, many insurers are offering payment help for anyone who's income has been affected by COVID-19.

Car insurance companies offering a discount during the coronavirus outbreak

Allstate (plus Esurance and Encompass)

Allstate, the parent company of online insurer Esurance and agent-sold Encompass, plans to provide a "shelter-in-place payback" to car insurance customers. For most customers, the refund will consist of 15% of your monthly premium for both April and May. The company stated in a press release that customers will automatically have this amount refunded to their bank account or credit card, or as a credit towards future payments.

According to data gathered by S&P Global Market Intelligence, the amount returned will vary by state, since insurance prices often vary by state. In California, S&P predicts an average payment of $30.66 per policy per month. In states where insurance is cheaper and payments are lower, people can expect to see lower payments. Alabama residents, for example, will see an average payment of about $26.

Only customers who have made at least one payment on their policy will be eligible. The minimum payment will be $10.

American Family Insurance

This Wisconsin-based insurer does most of its business in the Midwest. Car insurance customers will receive a one-time, $50 payment for each car insured. American Family says checks will be issued by mail to the policyholder's address. Checks will be sent as the company receives regulatory approval from individual states.

GEICO

Warren Buffet-owned GEICO has announced plans for a "GEICO Giveback Credit." Instead of a reimbursement, GEICO will take 15% off of renewed or new policies between April 8 and October 7, 2020. The credit will apply for both auto and motorcycle policies.

GEICO estimates that its average 6-month policy costs about $1,000, and that on average, customers can expect to save about $150 when their policy comes up for renewal. Customers both new and existing will see the discount reflected on their next policy.

Liberty Mutual Insurance

Boston-based insurer Liberty Mutual will also be issuing 15% refunds on its auto insurance policies. Liberty Mutual will issue 15% refund on both April and May's monthly payments. Liberty Mutual anticipates that this refund program will return over $25o million to customers.

The refunds don't require any action, and will be automatically sent either by check or by your last payment issue after regulatory approval.

USAA

On April 8, USAA announced that it will be returning a portion of premiums. Customers will see a 20% credit on two months of premiums "in the coming weeks," the company says on its site.

In a press release, USAA stated that policies must have been in place on March 31, 2020 to qualify, and that customers don't need to do anything to receive the refund. The company estimates that about $520 million will be returned to customers.

Travelers

Travelers also announced on April 8 that it would be crediting personal car insurance customers in response to the coronavirus outbreak and stay-at-home orders. The company will automatically credit 15% of April and May premiums to customers' accounts.

Progressive

Progressive will give customers a 20% refund in the form of a credit to their accounts for both April and May. People who have paid in full will receive a refund to the payment form linked to their account. The credit or refund will be automatically sent or applied to your account. Additionally, Progressive says that there may be an opportunity to offer credits for future months as the situation progresses.

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