With the global pandemic of COVID-19 and Stay at Home orders, people are staying home and driving less. That means fewer accidents and fewer auto claims. As a result, many auto insurers are offering a car insurance premium refunds as a credit on their April and May billing statements. You may be wondering how this affects you.
DOES MY INSURER OFFER A CAR INSURANCE PREMIUM REFUND?
Wondering whether your insurer is offering car insurance premium refunds? Here’s what you can expect from the following insurers that we work with:
- CHUBB: Clients will receive a 35% credit for April and May premiums, upon renewal.
- CINCINNATI: Clients will receive a 15% credit for April and May premiums.
- HANOVER: Clients will receive a 15% credit for April and May premiums.
- NGM: Clients will receive a credit of $50 per vehicle, paid via check over the next 60 days.
- PROGRESSIVE: Clients will receive a 20% credit for April and May premiums.
- SAFECO: Clients will receive a 15% credit for April and May premiums.
- TRAVELERS: Clients will receive a 15% credit for April and May premiums.
All of the above companies are also waiving late fees, and in most cases, giving a 60 day grace period on cancellations. It’s also important to note that many insurers have indicated that they may offer additional discounts for subsequent months, if the crisis extends past May.
WHAT DO I NEED TO DO TO RECEIVE THE CREDIT?
As a policyholder, you don’t need to do anything. These credits will be applied to your account automatically and show up as premium reductions or account credits on your next billing cycle. If you are paid in full, however, you may receive a refund check instead. For example, Hanover will issue two refund checks (May and June) for those who have paid in full and don’t have account balances on any of their other policies. If there are other policies with payments due, then the credit will be applied to those balances first.
If you have any questions about your individual insurer and how the credit will be applied, please call your insurance professional at Nicholas/Tobin Insurance.
Additionally, if you think you are going to have a problem paying your premium due to financial difficulties, let us know, and we will try to help. Many insurers are willing to work with policyholders facing financial hardships.
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Nicholas / Tobin Insurance, located in New Milford, Connecticut, provides its clients the highest quality insurance products and services available today to protect them, their families, and businesses. We offer homeowners insurance, renter’s insurance, car insurance, business insurance, travel insurance and more! Our commitment to service means our team of licensed insurance professionals is here to help with simple policy questions, consult with you to determine appropriate coverages and be available 24/7 when trouble strikes, and you need assistance managing through the claim process.