Look for a Loan to Your Next Car Insurance Account
You won’t get far these days, will you? If you feel like your car is on the street burning money, at least you will get a discount from your insurance company.
I’m not kidding. Car insurance companies have begun announcing that they will provide loans to customers to reduce their future bills or get money back on already paid policies. Reason: Fewer cars on the road means fewer accidents that insurance companies have to pay for.
Several states have imposed moratoriums on canceling auto insurance policies for non-payment, including Alaska, California, Connecticut, Indiana, Missouri, Mississippi, Ohio, and Washington. ( Geico maintains a list of states and their moratorium expiration dates if you want to check your state’s rules.)
In addition to complying with these government regulations, insurance companies offer various conditions for clients experiencing financial difficulties during the coronavirus pandemic.
Even if you can still pay the bill, you may soon receive a credit in the account. Here’s what some of the major carriers offer customers:
Allstate
Allstate Shelter-in-Place Payback will return customers an average of 15% of their April and May premiums. The credit will be credited to your account or refunded to your payment method. If you are using the Allstate app, check it there to get paid faster.
If you need more time to pay your insurance bill, you can request a payment plan for car and home insurance that delays payments by 60 days with no late fees.
Farmers and the 21st century
Customers will receive a 25% discount on the April premium. You don’t need to do anything to get the discount. “As we continue to receive updates in the coming weeks, we will be looking at additional ways to take care of our customers,” Farmers CEO Jeff Daly said in a press release .
Farmers and 21st Century have suspended cancellations and are offering flexible payment plans to customers who request them.
Geico
Geico provides customers with a 15% loan the next time you renew your policy between April 8th and October 7th, 2020. “For example, if your policy is $ 1,000 for 6 months, your loan will be $ 150 on renewal,” the company said in a statement. state of the web page . “We’ll take care of you so you don’t have to do anything.” The loan also applies to new policies.
Geiko states that policies that are subject to cancellation due to expiration or non-payment will not be canceled until at least April 30th. The company allows customers to delay or suspend payments or make partial payments during a pandemic.
Countrywide
Nationwide will provide auto insurance customers with a one-time reimbursement of $ 50 for the policy in effect as of March 31st. This is equivalent to an average savings of 15% in two months, according to the company. Refunds will be credited to your last payment method by May 9th.
If you find it difficult to pay your bill, you can ask to postpone the due date or cancel the late payment fee. The company can also prevent the cancellation of your policy for non-payment.
Progressive
Progressive will provide auto insurance customers with a 20% loan in April and May.
You don’t have to do anything. We automatically calculate your loan at the end of each month, and after a few weeks you will see it reflected in your account. If you have a balance under your policy, we will credit the credit directly to your balance. And if you’ve already been paid in full, we’ll refund to your registered billing account, so make sure your billing details are up to date.
Progressive will waive late fees and suspend cancellations until May 15th. This will also pause the collection process. If you need more time to pay your bills, call support to arrange. Progressive notes that you can continue to receive invoices even after the payment schedule changes, while the payment system catches up with the increased demand.
State farm
The State Farm Neighborhood Assistance Program will provide political credit equal to 25% of your insurance premium from March 20 to May 31 for “most clients.” The exact percentage varies by state. Starting in June, you will see that the loan has been applied to your account.
The company recommends contacting your agent for billing assistance if you are facing financial problems.
USAA
USAA auto insurance customers will receive a 20% loan for two months of premiums while their policy was in effect as of March 31st. You don’t need to call to request it; you will see the credit applied to your account.
USAA will not cancel anyone’s coverage for non-payment until June 17, 2020, and will not charge late fees. (The cancellation pause is suitable for car and property insurance policies.)
USAA offers “special payment terms” to members experiencing financial difficulties during the pandemic.