The insurer says it will be returning a total of $800 million in dividends to its members
The country’s fifth-largest property-casualty insurer has announced that it will be returning an additional $280 million dividend to its auto insurance policyholders. The insurer said that its decision to provide additional relief is based on updated data showing the continued reduction in drivers on the road during COVID-19 stay-at-home orders.
The announcement follows last month’s news that USAA would provide a dividend of $520 million to its members as a 20% credit on two months’ worth of premiums. According to the insurer, the new additional credit will reflect 20% of a third month’s worth of premiums, and will be provided to all auto insurance policyholders with policies in effect as of April 30, 2020. In total, the company calculates that it is returning approximately $800 million in dividends to all auto insurance policyholders and a total amount of $3.2 billion to members since January 2019.
“During this time of uncertainty, we are proud to provide a second dividend to our auto policyholders,” said Wayne Peacock, USAA President and CEO. “It’s the heart of our mission to serve members every day and when they need us most, a commitment that we’ve made to the military community for nearly 100 years.”
How the return works
Dividends have been executed for the prior announcement of $520 million, and members have already received these credits to their accounts. Similarly, members will automatically receive the additional dividend as a credit applied to their auto and property insurance account in late May. Members do not need to call, and no further action is required to receive the dividend.
Other ways USAA is providing financial relief for members
The return of auto dividends, which impact more than 7 million members with auto insurance, is just one of the many steps USAA is taking to provide financial assistance during this time. The company has also provided financial relief to more than 620,000 members related to COVID-19, through an array of programs including:
- USAA Property and Casualty Insurance is offering special payment arrangements to assist members experiencing financial difficulties.
- USAA Property and Casualty Insurance is not cancelling or charging fees for auto and property insurance due to late payments through at least June 17, 2020.
- USAA Property and Casualty Insurance is providing auto insurance coverage for members using their personal car to deliver food, medicine and other goods for their employers because of business operations changes due to COVID-19.*
- USAA Bank is offering special payment assistance programs for eligible members, including a 90-day credit card payment deferral, a 90-day payment extension on consumer loans and special mortgage and home equity line of credit payment assistance.
- USAA Bank is ensuring members with USAA bank accounts, including accounts with negative balances and closed accounts, receive access to their full stimulus payments.
- USAA Life Insurance Company is offering special payment arrangements on life and health insurance policies, including a 60-day extension to the 30-day grace period.
- USAA Life Insurance Company is waiving and reimbursing deductibles and co-payments for coronavirus-related testing received on or after Feb. 4, 2020, for members who have USAA Medicare Supplement plan.
- USAA Investment Management Company has reduced managed portfolio fees 50% (effective April 1 through May 20‚ 2020).
Additionally, USAA has taken steps to help its employees stay safe and able to serve members by enabling nearly all 35,000 employees to work from home and committed $5 million to help military-focused and other nonprofits respond to this pandemic.
