Will I See Auto Premium Relief Due to Coronavirus?

Coronavirus Auto Premium Relief Programs

You may have seen press about insurance companies offering premium relief during this pandemic and wondered if you will see any relief with your own auto insurance policies. 

The answers differ based on the company, but we've curated a list of the companies we partner with who are offering relief on their auto policies. We've also listed the terms of each relief program.

Our insurance partners offering some type of relief include Erie, Nationwide, Penn National, Progressive, Safeco, Selective, and Westfield. With that said, if the insurance company your policy is currently with isn't offering some type of relief, give us a call and we can help you find other ways to save.

ERIE

Will I see any relief with my Erie auto policy?  

The answer: It's very likely.  Read on to see why we can't answer the question with a simple "Yes"

Here's what they're doing:

• ERIE is proposing to take an overall 5 percent reduction in personal and commercial auto premium — approximately $200 million, but the rate reduction that applies will vary by insured and individually purchased policies. ERIE is working with their actuarial team now to determine the details by state and product.  Rate reductions must be approved by each state.
• In addition, they have declared a dividend, which is 30% of the auto premium for  April and May.  Look for a check sometime in May.

Here's when you can expect to see a rate change

• We anticipate that the lower rates will be approved this summer. Premium adjustments will take effect at the time of new policy initiation or upon renewal after the effective date of regulatory approval.

What about if you have Rate Lock (on a personal auto policy)?

• Yes, there will be rate reductions for ERIE Rate Lock; however, current ERIE Rate Lock Customers' rates won't change until you make a qualifying change (change a car, change a driver, change an address).  Even if you have Rate Lock, call our office to discuss what can be done to see if you qualify for the rate reduction.

Here's why they're doing it this way:

• ERIE's pricing philosophy has always centered around providing exceptional protection and service at the lowest possible cost. Lowering rates now is the right thing to do. Miles driven is down sharply. Auto claims are down as well.
• ERIE's approach is a departure from the actions announced by some auto insurers recently. Those actions—premium rebates and credits primarily—offer a short-term fix to what ERIE believes may be a longer-term situation. Their decision to lower rates is designed to offer more impactful relief to Customers—now and into the future.

What if you need help now?

• ERIE has been very flexible in providing billing relief including individualized payment flexibility. 
• Call our office for help (717-235-6891).  Monday through Friday 8 a.m. to 4:30 p.m.
• Call ERIE's Customer Care team at 800-458-0811 Monday through Friday 8 a.m. to 11p.m or Saturdays 9 a.m. to 4:30 p.m. 
• Depending on how your lives have changed, there may be other ways to reduce premium, like reducing mileage, combining policies for discounts, etc. 
• Bottom line: Call us!

NATIONWIDE

Will I see any relief with my Nationwide personal auto policy?   

The answer: Yes.

Here's how it will be applied:

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

What do you need to do?

• Nothing
• Refunds will automatically be credited to the your most recent method of payment (automatic withdrawal, credit card, personal check) within the next 30 days.
• The premium refund and timing are subject to individual state Departments of Insurance approval.

If you need additional billing relief

• Nationwide has been very flexible in providing billing relief
• There may be other ways you can save by combining policies for multi policy discounts, changing mileage, etc. 
• Please call our office for help (717-235-6891).  Monday through Friday 8 a.m. to 4:30 p.m.

PENN NATIONAL

Will I see any relief with my Penn National auto policy?   

The answer: Yes.

Here's how it will be applied:

• 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. 

What do you need to do?

• Nothing
• The credit will automatically be applied to your next premium balance or refunded if paid in full. This credit is expected to be applied to the policyholder's next premium balance or refunded if premium was paid in full beginning in May.

If you need additional billing relief

• Penn National has been very flexible in providing billing relief and is providing an extended 30-day premium grace period to allow customers more time to pay before cancellation notices are sent. They are also following state-specific directives by waiving late fees and reinstatement fees.
• There may be other ways you can save by combining policies for multi policy discounts, changing mileage, etc. 
• Please call our office for help (717-235-6891).  Monday through Friday 8 a.m. to 4:30 p.m.

PROGRESSIVE

Will I see any relief with my Progressive auto policy?   

The answer: Yes.

Here's how it will be applied (Subject to approval by state regulators):

• Personal auto customers who have a policy in force as of April 30 will be credited 20% of their April premiums in May. 
• Personal auto customers with a policy in force as of May 31 will be credited 20% of their May premiums in June.
• Progressive estimates that the sum of these two credits will total approximately $1 billion.

What do you need to do?

• Nothing
• The credits will be applied automatically to your policy.  If you have paid in full you will receive a payment of the credited amounts.
• You will see it reflected in your accounts within a few weeks after month end. 

If you need additional billing relief

• Progressive has been very flexible in providing billing relief
• There may be other ways you can save by combining policies for multi policy discounts
• Please call our office for help (717-235-6891).  Monday through Friday 8 a.m. to 4:30 p.m.

SAFECO

Will I see any relief with my Safeco auto policy?   

The answer: Yes.

Here's how it will be applied (Subject to approval by state regulators):

• Personal auto insurance customers will receive a 15% refund of two months of their annual auto premium as of April 7, 2020, pending regulatory approval. 
• The refunds will begin in April and will be issued either by check or in the manner the customer made their most recent payment. 

What do you need to do?

• Nothing
• The payments will happen automatically. Customers do not need to call Safeco to receive the refund. 

If you need additional billing relief

• Late fee charges have been automatically stopped and cancellations due to non-payment have been temporarily paused for personal auto and home customers from March 23 through at least May 22, 2020. 
• Safeco has been very flexible in providing billing relief.
• There may be other ways you can save by combining policies for multi policy discounts, changing mileage, etc. 
• Please call our office for help (717-235-6891).  Monday through Friday 8 a.m. to 4:30 p.m.

SELECTIVE

Will I see any relief with my Selective auto policy?   

The answer: Yes.

Here's how it will be applied (subject to approval by state regulators):

• Customers with an in force personal and/or business auto policy as of April 30, 2020 and May 31, 2020 will receive 15% of their monthly premium for April and May applied to their account

What do you need to do?

• Nothing
• Credits automatically will be issued without action required by you

If you need additional billing relief

• Selective has been very flexible in providing billing relief
• There may be other ways you can save by combining policies for multi policy discounts, changing mileage, reducing sales, payroll, etc. 
• Please call our office for help (717-235-6891).  Monday through Friday 8 a.m. to 4:30 p.m.
  
   

WESTFIELD 

Will I see any relief with my Westfield personal auto policy?   

The answer: Yes.

Here's how it will be applied (Subject to approval by state regulators):

• Personal Auto customers will receive a 15 percent credit of their eligible monthly auto premium for the months of April, May, and June 2020. 
• Personal Auto customers with an active Personal Auto policy as of April 30, 2020, will receive the full credit to their bill in the month of May 2020. 

What do you need to do?

• Nothing
• Westfield will take care of the paperwork. You don't need to do a thing. 

If you need additional billing relief

• Westfield has suspended all cancellations and late fees from March 20 through May 31, 2020.  
• They've been very flexible in providing billing relief.
• There may be other ways you can save by combining policies for multi policy discounts, changing mileage, etc. 
• Please call our office for help (717-235-6891).  Monday through Friday 8 a.m. to 4:30 p.m.

Conclusion

We're excited about positive actions we can deliver to our customers during COVID-19 and we're so happy our company partners are responding.  If you have specific questions about your policy, please contact our office and we'll connect you with a teammate to answer your questions.