Insurance carriers respond to the global pandemic and how they’re helping out communities and individuals.
It’s helpful to see small acts of kindness that give hope during these difficult times. In Pittsburgh’s little town of Aspinwall, PA, a concrete wall has turned into an inspiring wall of chalk artwork from adults and kids alike.
The insurance carriers that we represent are taking steps – big and small – to help out our mutual clients and communities across the US to stand strong, see the good in each day, and to help out those in need. With so many Americans sheltering-in-place and doing their part to flatten the curve, there are less vehicles on the road, less miles on your car, and less accidents happening each day.
In an effort to give back, some insurance companies are crediting a portion of their automobile premium back to their clients and finding other ways to help. This is an ever evolving list but we hope you find this information helpful in understanding what they are doing and what action, if any, you need to take on your end to benefit:
AIG Private Client Group:
Subject to regulatory review and approval where needed, AIG Private Client Group automobile policy holders can expect a 25% credit back from their auto premium accrued during the two-month period of March-April 2020. They are taking steps with premium billing assistance and can reach out to their billing team to address these concerns at (888)978-5371 or firstname.lastname@example.org.
AIG is also supporting local communities, donating thousands of masks to hospitals, distributing food to non-profit organizations and contributing to local relief efforts in the US, Canada and Bermuda.
On April 5, they announced that the company is committing $10 million to pandemic relief efforts globally and that they will not conduct any layoffs of Chubb employees while in the midst of the pandemic.
On April 13, they also announced that they will be providing a credit for its personal auto insurance clients in the form of a 35% premium reduction for the months of April, May, and a portion of June. No action is required on the client’s end. The credit applies to the upcoming renewals and will be shown as a renewal credit or as a refund check at renewal for a few select states.
If assistance is needed with billing issues, please reach out to your Account Manager to discuss.
On April 10, they announced a 15% stay-at-home personal auto credit for April and May premiums – pending regulatory approval. No action is required on the client’s end to receive this discount.
They have also paused cancellations due to nonpayment of premium and are waiving late fees until May 31. Extending to a later date may occur based on individual states.
In addition, they have temporarily waived contractual restrictions on policyholders now performing delivery services in efforts to protect the wellbeing of their communities.
Their efforts include a Shelter-In-Place Payback with an average of 15% money back based on their monthly premium for April, May, and June. Please make sure that your payment information is up to date. Note that Encompass also informed us that customers have received calls asking for account information – note that this is a SCAM and customers should not provide bank or credit card information or money to individuals who call regarding the Payback.
They are offering free identity protection from Encompass’ parent company, Allstate, by signing up in April or May.
Payment relief is available for those in need and can be requested to be placed on a special payment plan. If you are enrolled in Easy Pay/Recurring Credit Card, please call if payment relief is needed so your Account Manager can update your billing information to benefit from this.
They have also temporarily extended coverage for customers who use their personal vehicles to deliver food, medicine and other goods during the Covid-19 state of emergency period. The start and end dates for this endorsement are tied to a governor’s declared State of Emergency, not a Shelter-in-Place order or other Department of Insurance orders. Once the COVID-19 State of Emergency has ended, the endorsement terminates and will no longer apply to the customer’s insurance policy. This means the commercial exclusion applies and coverage is not provided.
They have suspended notices of cancellation for late payments and are waiving late fees for their members for the time being.
All personal lines auto policyholders will receive a 15% premium credit for April and May. Members do not need to take any action to receive their premium credit/refund. The credit will be applied to the next installment or refunded by check, depending on the current payment options selected by the member.
Goodville will provide members that are fortunate and able to be charitable an option to forego their premium refund and direct it to charity. To do so, members can visit www.goodville.com/covid19 or call 800-603-8152 before June 1, 2020. In addition, Goodville is committing $100,000 in matching funds to this effort. Members will have the option to direct their charitable contributions to regional food banks, first responders/healthcare workers, or international relief.
A member letter is being sent out to all policyholders starting May 1, 2020 with further details.
Hagerty Collector Car:
They have taken efforts to provide assistance if there are issues with payments because of the Covid-19 impact. Please call your Account Manager to discuss if you have any questions.
Nationwide Private Client:
The Nationwide Foundation has made $5 million in contributions to local and national charities to support pandemic response efforts.
They have also taken measures to assist with payment concerns and premium relief for personal automobile policies in the form of a one-time premium credit of $50. No action is needed for the premium credit. If you need assistance with billing, please reach out to your Account Manager to discuss.
They have introduced the Apron Relief Program. Subject to approval by state regulators, personal auto customers who have a policy in force as of April 30 and May 31 will be credited 20% on their May and June premiums respectively. Additional credits may be offered in the coming months. No action is needed to receive these benefits.
Starting April 1 through May 15, customers will not be cancelled or non-renewed for non-payment of premium. This is subject to state leniency guidelines. Late fees or cancel fees will not be charged, collections will be paused, and they will hold off on cancelling or non-renewing any active policies due to non-payment through May 15, 2020. Automatic payments will continue to go through unless directed otherwise. Please contact your Account Manager if you have questions on this.
There are temporary modifications to the policy exclusions to provide applicable coverage for claims involving food and medicine delivery activity by Personal Auto and Motorcycle customers.
They are also offering additional assistance to support first responders, health care workers, and delivery personnel.
The Progressive Foundation has funded an $8 million donation to go to charities focused on hunger, health, and homelessness.
A Special Refund notification was released as of April 13 indicating their efforts. They will continue to contribute to the Subscriber Savings Account. The approval for the next allocation for 2019 results will be released in the next few weeks.
They are making a Reduced Miles Refund to members with Pure auto policies. Subject to regulatory approval in each state, a 15% credit will apply for the period of time from the introduction of state stay-at-home orders until they are lifted. These will be paid in cash or applied to reduce any outstanding balance due to Pure. This will not apply to classic cars due to the already low-to-no mileage premium credits.
In addition to the funds already allocated through their Pure Insurance Foundation, they have added an additional grant of $500,000 to the current charitable organizations that they already serve including food banks throughout the US.
Pending regulatory approval, customers with an inforce personal auto policy as of April 30, 2020 and May 31, 2020 will receive 15% of their monthly premium for April and May applied to their account. Credits will be automatically issued without any required action on your end. Customers should see the credit from their April period applied to their account by May 15. If policies are paid in full, a refund check will be issued to them in late May. This process will be replicated in early June for the May time period.
They are also offering adjustments in pay plans and grace periods, where needed.
The Stay-At-Home Auto Premium Credit Program automatically gave US personal auto insurance customers a 15% credit on their April, May and June and these were subject to approval by state regulators.
On 6/16/2020, they returned to normal billing processes in most states. Customers that received billing relief and had $100 or more unpaid premium ($10 in California, Delaware, Maryland, New Jersey, New York, Oregon and Washington D.C.) will receive a separate ‘C’ bill and will have 12 months to pay the separate ‘C’ bill. Normal bills will also be going out and should be paid to keep the policies active. The premiums from normal bills and ‘C’ bills should be paid separately and not combined. If there are any questions, please call 1-800-842-5075 to speak with a Travelers representative.
They have, on a case by case basis, temporarily expanded their contract to cover customers whose job responsibilities now include using their personal vehicles to make food, grocery, pharmacy and medical supply deliveries. (This does not apply to those who are working for transportation network companies.)
Cancellation and non-renewals have been suspended through June 15 with no interest, late fees, or penalties during this time. This does not apply to recurring payment plans.
Philanthropically, they have pledged $5 million to Covid-19 relief efforts to assist families and communities across North America, the United Kingdom, and the Republic of Ireland, among other efforts.
Please note that these are all recent announcements and are pending individual state regulatory approval. This is meant to be a general summary and all terms, conditions, and coverage are dependent on each individual policy at the time of a claim. We will continue to update as additional information comes in which, at the moment, is daily. Take care, stay safe, and be well.
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From your Private Client Services Team at Simpson|McCrady
Last updated 9/15/20