ORLANDO, Fla. - State Farm and Progressive are the latest auto insurance companies to return money to its policyholders during the COVID-19 outbreak.
Insurance giant State Farm says it will return up to $2 billion to customers.
"With schools and businesses closed, and many of us sheltering in our homes, people are driving less right now, so we’re returning value to customers as we anticipate fewer auto claims," the company said in a press release. "Customers do not need to take any action to receive this dividend, which will appear as a credit on their auto policy."
The dividend is part of the Good Neighbor Relief Program that also includes customer payment options and neighborhood philanthropic relief.
On average, State Farm says auto customers can expect to receive a credit of about 25 percent of premium for the time period March 20 through May 31. However exact percentages will vary by state. Customers should receive credits applied against bills beginning as early as June.
Progressive also says it is providing approximately $1 billion to customers as a result of fewer claims that come with less frequent driving.
"Progressive personal auto customers who have a policy in force as of April 30th will be credited 20% of their April premiums in May and personal auto customers with a policy in force as of May 31st will be credited 20% of their May premiums in June."
GEICO recently announced that they will return about $2.5 billion to their customers between April and October in order to help those affected by the coronavirus outbreak.