Insurance Companies Respond to COVID-19

As the warmer weather is upon us, the Spring and Summer of 2020 will be like nothing we’ve ever seen before. 

Back in March, mass shutdowns began across the US and worldwide as a response measure to COVID-19. This meant for a lot of individuals and businesses - a massive economic strain. 

With many US residents questioning how they were going to be able to financially cope with the changes, banks and credit card companies started to offer deferred payment options and a reduction in interest rates to offer some financial relief during this time.Home and auto insurance companies have also stepped up to do the same. In today’s article, we highlight some of the leading businesses in the insurance industry and the response programs they are providing.

Before we begin keep in mind …

Our article today highlights some but not all insurance company’s measures. If you don’t see your insurance company on the list, reach out to your broker and discuss your options and whether you qualify for their COVID-19 relief programs.

Here’s a list of just some of the many ways the insurance industry is paying it forward to their customers, and communities:

Liberty
Addressing the health and safety of their customers and communities, Liberty Mutual Insurance announced its Personal Auto Customer Relief Refund program. For up to 2 months on their client’s annual premium, Liberty offers a 15% refund. Liberty is also paying it forward to their community members through its philanthropy program being offered during this time of need. They have committed $15 million in crisis grants to community organizations that are responding to the coronavirus.

State Farm
State Farm was quick to act with some amazing offerings. Currently, they are providing 24/7 support to their clients. They’ve returned a 2 billion dollar dividend to customers and offer a policy credit of up to 25% as a result. They are also donating millions to nonprofit organizations that are directly supporting COVID-19 relief efforts within their communities. 

American Family
On April 6, 2020, American Family Insurance announced that it was returning approximately $200 million to its clients in the auto insurance sector. They will be delivering the premium in the form of a one-time payment of $50 per vehicle covered under the personal auto policy. 

They are also providing payment deferrals, payment plans, underwriting and non-renewal cancellation, and late fee removal. For food delivery drivers, they have also extended private passenger automobile coverage.

They are also providing support to their local communities and have donated more than $6.8 million to COVID-19 relief and other non-profits including the Stricker American Family Insurance Foundation and American Family Dreams Foundation. They are also matching 2-to-1 for charitable donations. 

Geico
Geico has announced some really great relief initiatives to help their clients through a pay-it-forward approach. They are offering a 15% credit on 6-month and 12-month policy terms for their auto, motorcycle, and RV policyholders. 

Until at least May 31, 2020, Geico has paused cancellation of coverage for non-payment and policy expiration. 

Learn more about Geico’s response to COVID-19 here.

Allstate
Right now, Allstate is offering several support measures including: $600 million payback for auto insurance customers, and millions of dollars in contributions to community relief, and recovery efforts. 

Allstate is providing 15% back on April and May monthly premiums and free identity protection for the rest of the year. If policyholders find themselves struggling to make monthly installments, Allstate is offering a specialty payment plan that delays payments without penalty.

For their clients who are delivering food, medical supplies, and other essentials during COVID-19, Allstate will automatically cover them as well. 

In times of crisis, communities can really come together to help each other out. The Insurance community has been no exception. Almost every insurance company has now responded to COVID-19 with some incredible relief programs. The companies who have gone above and beyond will stand out from the rest and once we overcome this crisis, their actions towards their employees, clients, and communities will not go unnoticed. 

If you are a small business impacted by COVID-19, we have another article that highlights the many funding and support programs that are available to you. Visit our article to find out more about these programs.