Customers will benefit from an immediate 10% credit on personal auto insurance bills from July-December
American Family Insurance has announced additional premium relief for personal auto insurance customers raising total relief to $425 million – all to be paid in 2020 – as a result of continued decreased driving and claims due to the COVID-19 pandemic.
“We received an outpouring of customer gratitude during our first round of premium relief. They told us they used the relief to buy groceries, address other important needs, and even give to charity,” said Telisa Yancy, American Family chief operating officer. “They inspired us to do more to immediately help them as reduced driving trends continue.”
The plan includes $225 million in additional premium relief through a 10% premium credit on personal auto insurance policies in force during the period of July 1 through December 31, 2020, and expanded discounts. This follows the return of $200 million in premium to personal auto insurance customers in April.
Monthly bills for coverage within the July-December time period will reflect the 10% premium credit. Customers who have paid in full for coverage that extends into that time period will receive their credit via a check.
Premium credit will provide immediate relief
In April, American Family was the first insurer to announce premium relief for its customers, delivering checks for $50 per vehicle covered by an American Family personal auto policy. This time, the company decided to issue the 10% premium credit, which will reduce billed premium by varying dollar amounts commensurate with the type and amount of coverage selected by the customer.
“Issuing the premium relief to customers in their monthly bill rather than a rate reduction allows our auto customers to benefit immediately rather than waiting up to 12 months for their policy to renew,” Yancy said.
American Family has already received approval for its plan to issue premium credit from insurance regulators in Wisconsin, Arizona, Idaho, Iowa, Kansas, Minnesota, Nevada and Oregon and has filed its plan in the 11 other states where it operates. Those other states are Colorado, Georgia, Illinois, Indiana, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Utah and Washington.
Additional support for customers and communities
Premium relief isn’t the only way the company is supporting customers during this uncertain time. American Family is also offering flexibility in several areas including payment deferral, payment plans, the removal of late fees, and suspending underwriting and non-renewal cancellations.
American Family has also extended private passenger automobile coverage to food delivery drivers hired by restaurants.
