Progressive to offer $1 billion in rebates to auto insurance customers

Progressive to offer $1 billion in rebates to auto insurance customers | Insurance Business

Progressive to offer $1 billion in rebates to auto insurance customers

Progressive Insurance has announced that it is providing approximately $1 billion to its auto insurance customers due to the reduced number of claims and less frequent driving brought about by the COVID-19 pandemic.

Subject to state regulatory approval, the insurer’s personal auto customers who have a policy in force as of April 30 will be credited 20% of their April premiums in May. Additionally, personal auto customers with a policy in force as of May 31 will be credited 20% of their May premiums in June. Progressive estimated that the sum of both credits will total $1 billion.

A release said that customers will not need to take any additional action to receive the benefits, and that the credits will be automatically applied to their policies.

“We understand how difficult and uncertain people’s lives are right now. While auto insurance might not be the most pressing topic on everyone’s mind, we know that finances could be. For our customers who have trusted us to be there in their times of need, we’re fulfilling that promise. We want them to know how much we care,” said Progressive president and CEO Tricia Griffith.

In addition to the rebates, Progressive has revealed that it has been supporting its customers, employees, agents, and local communities through its “Apron Relief Program.”

A company release said that the Apron Relief Program consists of:

  • For customers:
    • Suspending cancellations and non-renewals on personal and commercial lines policies for non-payment through May 15.
    • Providing commercial lines customers with a business owner or general liability policy underwritten by Progressive a 20% credit on April and May monthly premiums.
    • Providing a full-service claims experience for first responders and health care workers who experience a car accident by providing enhanced roadside service (including transportation to work or home from the accident if needed), expedited tow service and vehicle repairs, pick-up and delivery of the repaired vehicle, all while deferring deductibles and providing a rental vehicle if needed.
    • Expanding coverage for personal auto customers temporarily delivering food or medicine and allowing commercial customers additional coverage options for delivery.
    • Extending payment leniency, waiving late fees and pausing collections.
    • Deferring deductibles to help customers who cannot pay out of pocket to get their car repaired.
    • Providing delivered meals for its for-hire trucking customers, first responders and health care providers.
  • For employees:
    • Providing work from home capabilities for the vast majority of employees.
    • Providing financial support including advances on its annual bonus program, vacation days and paid leave for those who are unable or uncomfortable continuing to work.
    • Easing the burden of health care costs by covering co-pays for telemedicine visits and covering costs of COVID-19 medical treatments.
  • For communities:
    • Helping in the towns where its employees, agents and customers live by funding a donation of $8 million by the Progressive Foundation to charities focused on hunger, health and homelessness, including Feeding America, the American Red Cross and the National Alliance to End Homelessness.
  • For agents:
    • Partnering with agent associations to provide direct relief through grants to help agents address the new challenges presented by the virus.
    • Enhancing programs for Platinum and Priority agents to provide more opportunities to earn in this changing market.
    • Offering producers in its partner programs unlimited access to continuing education courses and increasing opportunities for all producers to earn through its Agent Rewards program.
    • Continuing to support agents with 24x7 servicing for their customers and virtual visits from its sales team.