How Insurance Carriers Are Helping Customers During COVID-19

As the COVID-19 pandemic continues, we wanted to provide some updates on what insurance carriers are doing to help their customers out.

Many carriers are now allowing customers to defer payments or pay in smaller installments, and some personal auto providers are even giving back credits on insurance premiums.

If you have any questions or concerns about your insurance policy, our team is here to help.

Keep reading below for the latest on which carriers are offering benefits. This information has been taken directly from them.

We’ll be adding more updates to this page as we receive them. It is up to date as of 4 PM on 4/13.

Give us a call at 973.237.1000 or fill out this form.

Chubb

Updated 4/13/20:

We are bringing to your attention the Auto Premium Credit announcement that has just been released. This is another step Chubb has taken to properly service clients during this pandemic.

We will communicate in greater detail the effective dates for your clients as we work through operationalizing this program and complying with any state regulatory requirements. Thank you for your patience and for all that you’re doing to serve clients during these rapidly changing times.

Please stay safe and healthy.

Official News Release:

Chubb Announces Premium Credit for U.S. Auto Policyholders to Reflect Changing Driving Habits Due to the COVID-19 Pandemic – Savings for U.S. personal auto clients to average $110 per vehicle

WHITEHOUSE STATION, N.J. April 13, 2020- Chubb is providing its personal auto insurance clients in the U.S. with a credit on annual renewal premiums as a result of reduced driving activity.

Upon renewal, clients will receive a credit reflecting a 35% premium reduction for the months of April and May, with additional discounts for subsequent months, as the situation warrants. Across Chubb’s portfolio, the average credit is expected to be $110 per vehicle. Clients will not have to request the credit, it will be applied automatically at renewal. All premium and rate adjustments are subject to regulatory approval. 

“In these rapidly changing times, we have been thinking about our clients and the challenges they are facing. We recognize that there has been a reduction in our clients’ driving activity as a result of this pandemic,” said Fran O’Brien, Division President, North America Personal Risk Services. “This credit reflects our commitment to providing a fair premium adjustment to our clients, while ensuring they continue to receive Chubb’s best-in-class auto coverage.”

Updated 4/9/20:

Chubb PRS: Examining the impact of lower auto usage.

Recently we have received questions regarding carriers who have made the decision to provide their clients with refunds based on their changing driving behaviors in this unprecedented environment.

As a matter of course, changes in loss frequency would be included in our annual rate reviews and reflected in our pricing.

We recognize that the current situation may have a long timeline with a prolonged dip in frequency depending on the speed of economic recovery.

We are currently evaluating the situation to determine an appropriate course of action for our clients. In the meantime, please be assured that our top priority is servicing you and our clients.

We are proud of the way in which our industry has responded in this crisis. At Chubb, just as you have, we have fully transitioned to working from home.

Our team has implemented virtual risk consulting visits and claims adjustments while staying very engaged with our mutual clients.

Your clients who suffer a claim or need billing assistance will be glad that your firms are there to advise them and have recommended broad coverages from a company known for high levels of service.

We are also proud of Chubb’s $10 million pledge for pandemic relief and our commitment to our employees that there will be no layoffs during this time.

We remain committed to helping you and your clients through this crisis. Please stay safe and healthy.

Encompass

Updated 5/27/2020:

Great news: the Shelter-in-Place Payback is being extended through June 30, 2020, for personal auto customers. There are a few differences from previous paybacks – read on to learn more.

We led the industry by providing customers with a payback program, and have returned more than $600 million in April and May (May and June in New York), along with our Special Payment Plan and commercial auto endorsement. As our data shows customers continue to be driving less and getting in fewer accidents during the pandemic, we are extending the Shelter-in-Place Payback through June 30, 2020, for personal auto insurance customers. And more great news – motorcycle customers are included in the June payout as well!

And it should be noted that over the three-month period, Encompass is returning approximately $1 billion to our customers, without impacting agency commissions.

Important details about the June payback:

  • Motorcycle insurance customers are included.
  • Customers will receive an automatic credit to their accounts, with most receiving 15% of their monthly premiums.
  • The amount reflects Encompass’ disciplined analysis of available data. The average cost per accident has increased, partially offsetting cost savings.
  • You will be kept informed of the final amount as filings are submitted and approved.
  • We are applying the June payback to the customer’s Encompass account. Certain customers, like those who paid in full, will have their June paybacks applied to a bank account, credit card or via check – see the FAQs linked below for the details.
  • In New York, the paybacks will be one month later. Eligible customers with an active policy in force as of April 30, 2020 should have received the May payback in mid-May and those with policies in force as of May 31, 2020 can expect the June payback in mid-June. We also expect to issue a third payment in July for policies in force as of June 30. The 15% payback will be based on the monthly premium as of those dates. Other than the payback dates, there are no changes to the program for New York.
  • Communications about the June payback will occur at the end of May. Keep an eye on Encompass Express.
  • The sign-up period for free identity protection for all U.S. residents will also be extended to June 30, 2020.

The Shelter-in-Place Payback can be a great opportunity to reach out to customers and prospects and increase retention, uncover cross sell opportunities and grow your book of business.

Please visit Encompass Express for more information and FAQs.

Updated April 2020:

Eligible auto customers will get an average payback of about 15% based on their monthly insurance costs during April and May.

Payment Relief

Encompass customers experiencing financial challenges can call Encompass to learn how to delay payments without penalty.

The Special Payment Plan gives auto and homeowner insurance customers the choice to delay two consecutive premium payments.

Customers also can choose to pay what they can afford

Mercury Insurance

Recognizing that many customers are driving their vehicles less as a result of shelter-in-place actions, Mercury plans to give back 15% of monthly premiums for April and May 2020.

This applies to all Mercury Private Passenger Automobile policyholders. Customers will receive their Givebacks in the same manner their premiums were paid.

As soon as we receive guidance and approval from the Department of Insurance, we expect to begin processing the payments.

Metlife

Recognizing the economic hardship caused by the COVID-19 pandemic, MetLife is taking action to help its customers during this challenging time.

The company’s property and casualty business, MetLife Auto & Home®, is providing financial relief, preserving coverage in the event of missed payments, and processing claims remotely to ensure social distancing.

“Being there for our customers when they need us the most is the promise MetLife delivers on every day,” notes Darla Finchum, president, MetLife Auto & Home®. “People are struggling, through no fault of their own, and we can help.”

MetLife Auto & Home® is offering the following to its customers nationwide:

Payment & Billing Leniency

Effective immediately, MetLife Auto & Home® will not cancel policies due to non-payment through July 1, 2020.

Customers experiencing difficulties with payments can contact MetLife Auto & Home® directly for assistance.

MetLife Auto Premium Relief

Active MetLife Auto customers who are paid to date will receive a 15% credit for April and May based on their monthly premiums.

No action is required by customers to receive the credit. MetLife Auto & Home® will apply a future credit to the customer’s account.

Extension for Personal Auto Delivery Coverage

Many of MetLife Auto & Home® auto insurance policies already provide coverage for people using their personal vehicles for delivering medicine or food.

MetLife Auto & Home® is extending coverage under all personal auto insurance programs at no additional charge while customers are making deliveries in response to the crisis, effective March 20, 2020, through May 1, 2020.

Nationwide

We realize that not all of our customers can make the pivot to usage-based insurance right now, yet many customers are currently experiencing hardship as a result of the COVID-19 pandemic.

To get relief in the hands of our customers quickly and simply, we are offering a one-time premium refund of $50 per policy for personal auto policies active as of March 31, 2020.

Customers don’t need to do anything. Refunds will automatically be credited to the customers’ most recent method of payment (automatic withdrawal, credit card, personal check) within the next 30 days.

We are offering this rapid relief at a time when drivers are making the right choice to stay off the road and remain home to help “flatten the curve.”

The refund applies to all personal auto policies including Private Client. The premium refund and timing are subject to individual state Departments of Insurance approval.

Penn National

Penn National is returning premiums to assist our Personal Auto policyholders during the COVID-19 pandemic

The COVID-19 pandemic has caused significant disruptions to our normal routines and unimaginable losses to some of our friends, family members and local communities. Social distancing policies have required restaurants, offices, small businesses and schools to close.

These closures along with government-mandated stay-at-home orders for non-essential travel have resulted in a decline in vehicle use and miles driven. It is estimated that there will be significantly fewer miles driven during the months of March and April nationwide.

Pending regulatory approval, a credit of 15% will be applied to two months of premiums for those policies in force as of April 30 in recognition of the temporary reduction in vehicle miles driven.

The credit will automatically be applied to the policyholder’s next premium balance or refunded if paid in full. Premium returned benefits our 165,000 Personal Auto customers.

While the full impact of the COVID-19 pandemic remains uncertain, we know customers are driving less and the fewer accidents are reflected in our return premium.

Helping support our policyholders and our community

In addition to providing refunds and premium credits to policyholders, we continue to support our customers and the greater community in a number of ways.

  • Flexible billing – We are providing an extended 30-day premium grace period to allow customers more time to pay before cancellation notices are sent. We are waiving late fees and reinstatement fees. Our Customer Contact Center representatives also have the authority switch a policyholder to a more convenient payment plan.
  • Uninterrupted customer support – Thanks to our technology and business continuity preparations, we continue to be available during normal business hours. Also, our customers can report claims 24/7.
  • Support for front-line healthcare workers – We recently donated over 19,000 respirator masks to Geisinger Holy Spirit Healthcare. We appreciate the tireless work of all healthcare professionals and will continue to look for ways to support them.

We will continue to keep you informed of new developments.

Plymouth Rock

Plymouth Rock was founded on the principle of doing the right thing for our customers and agents. That means going above and beyond to provide more than just insurance – most importantly during difficult times like the one we’re living in now.

We understand that nearly everyone has been affected by the coronavirus pandemic in some way, and many are experiencing serious financial hardship. We want to do everything we can to help our customers, particularly those who are most in need.

We have issued a press release detailing our planned relief efforts for customers. As a part of the announcement, we will introduce our “pay it forward” option, which gives anyone who wishes the ability to donate their auto insurance premium credit to a non-profit that is providing relief for those hit hardest by COVID‑19. It’s a simple way to help those most in need.

Additionally, Plymouth Rock plans to offer the following relief to its customers, subject to regulatory approval:

  • A 25% premium credit on Liability and Personal Injury Protection Coverages
  • The option to “pay it forward” by donating auto insurance premium credit to a non-profit organization
  • The waiver of comprehensive and collision deductibles for any health care worker involved in an accident while driving to and from work, or in the line of duty
  • Application of the home insurance Additional Living Expense Coverage to any health care worker required by illness or job requirements caused by COVID-19 to temporarily reside somewhere other than their primary residence when payment for these expenses is not provided by the health worker’s employer or another source
  • Continuation of our payment flexibility, including waiving of late fees and a 60-day grace period (longer in some states), holds on cancellations and non-renewals for non-payment, per state guidelines
  • Extension of our food and legal medicine delivery accommodation
  • All relief will be available to current policies and new business, effective April 1 and extended until each state’s individual stay-at-home orders are lifted.

You can read our press release in detail on the Plymouth Rock website. And for all of our COVID-19 related information, please visit the COVID-19 Independent Agent Message Center.

Progressive

Progressive returns $1 billion in premium to customers.

Today we announced that we’re providing credits of approximately $1 billion in premium to Progressive personal auto customers as a result of fewer claims that come with less frequent driving.

Subject to approval by state regulators, Progressive personal auto customers who have a policy in force as of April 30 will be credited 20% of their April premiums in May and personal auto customers with a policy in force as of May 31 will be credited 20% of their May premiums in June.

We estimate that the sum of these two credits will total approximately $1 billion. We may offer additional credits in the upcoming months.

Customers will not need to take any actions to receive the benefits. The credits will be applied automatically to the customer’s policy and those customers who have paid in full will receive a payment of the credited amounts.

If they have a balance on the policy, we’ll apply the credit directly to the remaining balance. And if they’ve already paid in full, we’ll return the money to the payment account we have on file— please make sure your customers’ payment details are up to date.

Selective

Updated 5/15/20:

With the COVID-19 health and economic crises impacting everyone, Selective and ABC Agency want to express our concern for your well-being, and that of your family, friends and associates. In recognition of these extraordinary circumstances, and in coordination with the New Jersey Department of Banking and Insurance, we are offering billing accommodations to all of our New Jersey customers.

To help you keep your insurance coverage during these difficult times, since March 25, Selective has offered customers experiencing a COVID-19-related financial hardship a premium payment grace period during which we have not cancelled policies for non-payment of premium. For our New Jersey customers:

The grace period will extend through August 1, 2020.

Upon request, premiums due but not paid during 90 days of the grace period may be deferred (90 Day Deferral) and payable in equal installments over the remainder of the current policy term or up to a 12 month period thereafter. All other unpaid premiums will be billed and due upon expiration of the grace period. However, we will work to accommodate flexible payment arrangements for the 90 Day Deferral premiums.

You may elect the 90 Day Deferral period for premiums due either from 4/1/2020 to 7/1/2020 or from 5/1/2020 to 8/1/2020.

If you take advantage of the grace period, we will:

  • Waive late payments fees that would otherwise be due.
  • Not report late payments to credit rating agencies.
  • Not consider the deferral of payment in any future premium calculations.

Please note the grace period applies to all installment payments, including renewal down payments, provided you notify Selective that you wish to continue coverage.

Updated 4/13/20:

In efforts to provide relief to insureds during these uncertain times, customers with personal and business auto insurance policies will receive a 15% premium credit for April and May related to the various COVID-19 shelter-in-place orders.

Please see attached press release and Q&A document for further details. We’ve included some of the more pressing questions below.

Who will qualify for a COVID-19-premium credit? 

The COVID-19 premium credit is only for customers with personal and business auto insurance policies in force as of April 30, 2020 and May 31, 2020.

How will the COVID-19 premium credit be applied?

15% of the monthly premium for the months of April and May will be applied as a credit to the account of each customer who has an in-force personal and/or business auto policy as of April 30, 2020 and May 31, 2020.

How can a customer find out exactly how much of a COVID-19 credit they’ll receive?

Customers who use our self-service portal and have shared their email address will receive a personalized email with their calculated COVID-19 premium credit, and any applicable credit will appear on a customer’s bill.

When will customers receive their COVID-19 premium credit?

We are currently working with state regulators on our planned premium credit, but we expect to apply the 15% credit for customers with an inforce auto policy as of April 30 in early May and as of May 31 in early June.

Travelers

We know that many of you are doing your part to help stop the spread of COVID-19 by staying at home.

That means many of you are driving fewer miles, resulting in a decrease in auto claims.

With that in mind, we have launched the Stay-at-Home Auto Premium Credit Program, which will automatically give you a 15% credit on your April and May premiums.

It’s our way of supporting you, and we hope it helps ease some of the financial burden many are experiencing.

And the best part: You don’t need to do anything. If you pay by monthly installments, you will receive the automatic credit on future bills. If you have already paid in full, you will receive a direct payment.