With This Additional Dividend USAA Will Return Over $1 Billion To Auto Insurance Policyholders As A Result Of COVID-19
The country’s fifth-largest P&C insurer, USAA, will return an additional $270 million dividend to its auto insurance policyholders the company has announced. This amount is in excess of the approximately $800 million in dividends or 30% credit on three months’ worth of premiums the company has already given back to members since the start of the COVID-19 public health crisis.
“Giving money back to our members, especially now when budgets are stretched, is another way we are helping,” USAA President and CEO Wayne Peacock said. “We see that members are driving less than when the pandemic hit. As these patterns unfold, we are adjusting our auto insurance rates.”
According to the insurer, the new additional dividend will reflect 10% of up to two months’ worth of premiums and will be provided to all auto insurance policyholders with policies in effect within the months of June and July. In total, USAA says it is returning $1.07 billion in dividends to its auto insurance policyholders as a reflection of the much lower amount of drivers currently on the road.
As a member-owned association, USAA historically returns a portion of profits to members. In 2019, USAA and various subsidiary companies returned nearly $2.4 billion in dividends, distributions, and bank rebates and rewards. This brings the total amount returned to members from January 2019 to over $3.4 billion.
How the return works
Dividends have been returned for the prior announcements of $800 million, and members have already received 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 August. Members do not need to call, and no further action is required to receive the dividend.