The Hanover is the second Massachusetts insurer to announce an auto premium giveback to its insureds
The Hanover Insurance Company has announced a new auto insurance relief program for its insureds in response to the COVID-19 global pandemic. Through the newly created CARES Refund, The Hanover will return 15% of April and May auto insurance premiums to its eligible personal lines customers.
“We recognize our customers are feeling significant stress, including financial pressure, as a result of this pandemic,” said John C. Roche, president, and chief executive officer at The Hanover. “Our company has a long, proud tradition of being there when we are needed most, delivering for those who depend on us. We are committed now, as always, to do what we can to help our customers, partners and home communities manage through these difficult times.”
According to the Worcester-based insurer, the decision to return a portion of premium paymentst o its customers comes as a result of governmental stay-at-home and shelter-in-place measures, which are reducing the number of vehicles on the roads, and consequently, the number of claims filed. This refund equates to approximately $30 million in premium, which will be recognized in the second quarter of 2020. Pending regulatory approvals, The Hanover will credit April in-force policies in May, and May in-force policies in June. Policyholders who have pre-paid premiums will receive credits in each of the same months.
Other measures The Hanover has taken to help its employees, insureds, and community in response to the COVID-19 public health crisis
To help ease the burden for customers, The Hanover has taken several measures including: •
- Offering flexibility on bill payment options for those experiencing financial hardship, without any penalties and fees, including placing a 60-day hold on cancellations and non-renewals for nonpayment •
- Extending personal auto coverage to individuals delivering food, medicine, and other essential goods at no additional charge
- Considering a covered premises as “occupied” while mandatory closures are in effect, addressing concerns with vacancy clauses
- Waiving the limit on additional living expenses to homeowners who are forced from their homes following covered losses, such as a fire, to pay for delayed repairs and the added costs associated with temporary living arrangements.
- Extending the number of days it will reimburse a customer for a rental car if an insured’s vehicle is in the shop and cannot be repaired or returned
In addition to the above initiatives, The Hanover also is donating $500,000 to local community nonprofits to provide pandemic-related assistance, including:
- $350,000 to local United Way, Boys & Girls Club and Chamber of Commerce organizations in Massachusetts and Michigan where the company employs large concentrations of employees
- Providing medical supplies and protective masks to local area hospitals • Delivering Cheeriodicals’ “gifts of thanks” to health care professionals at five hospitals in the hardest-hit areas across the country
- $50,000 to the Insurance Industry Charitable Foundation’s Children’s Relief Fund
- Implementing an employee matching gift program for donations to coronavirus relief efforts
More about The Hanover
The Hanover Insurance Group, Inc. is the holding company for several property and casualty insurance companies, which together constitute one of the largest insurance businesses in the United States. The company provides exceptional insurance solutions through a select group of independent agents and brokers. Together with its agents, The Hanover offers standard and specialized insurance protection for small and mid-sized businesses, as well as for homes, automobiles, and other personal items. The Hanover Insurance Company is currently the 12th largest personal auto insurer in the Commonwealth.
