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SALT LAKE CITY — Thousands of Utahns will receive a check from their insurance company due to parking their vehicles during the COVID-19 outbreak.
American Family Insurance this week announced the company will return approximately $4 million in “premium relief” to customers in the Beehive State following recent approval by the state’s Insurance Division, a news release stated.
The rebates are part of the national insurer’s plan to refund $200 million to customers who are driving notably less during the COVID-19 pandemic, explained American Family Insurance spokeswoman Clare Hendricks.
“Since the (Centers for Disease Control and Prevention) declared this as a pandemic, we have seen a savings of auto claims, we’ve had less auto claims,” she said. “Overall in the 19 states that we operate in, American Family operates in, we’ve seen about $200 million in claims savings. So we really wanted to look at that and say our responsibility to our customers who are staying home, who are helping flatten the curve, who are taking care of their families — we’re going to be sending everyone who has a personal auto policy a check.”
Customers will receive payments in the form of a check they can use as they wish, she added.
“We decided to do it in check form, instead of a rebate or this much off of your bill, because we really thought that they should be able to use that money for whatever they want,” Hendricks said. “(Customers) can do with this as you feel. If you want to donate this, if you want to send it to a friend or a loved one who isn’t working, who’s furloughed or who’s laid off. If you want to do that with it, you can do that. Having it as a check gives people the freedom to use it how they wish — for groceries or whatever they need.”
The premium relief equals approximately 30% of auto insurance premiums for two months, the release stated, and will come as a one-time payment of $50 per vehicle covered by an American Family personal auto policy. The typical customer household with auto coverage has two vehicles, she said, meaning the average relief payment will be $100.
American Family Insurance will distribute a $50 premium relief payment to our customers for every personal automobile they have insured with us. It’s our way of encouraging you to keep going as we get through the COVID-19 pandemic together. https://t.co/q4ADYdWtrzpic.twitter.com/H2F4a7NWjc
— American Family Insurance (@amfam) April 7, 2020
Checks are scheduled to be sent to Utah customers over the coming weeks, and American Family expects to complete distribution of the 2.3 million checks for customers in all states over a two-month period. The relief payments are based on personal auto policies in force as of March 11, the date the World Health Organization declared COVID-19 a pandemic, the release stated.
Numerous auto insurers, including Allstate, USAA, Geico, Liberty Mutual also announced they would be issuing rebates to customers for driving less as a result of the coronavirus outbreak.
