Geico announces 15 percent auto insurance credit worth billions because people are driving less
Geico will be giving a 15 percent credit to auto and motorcycle policyholders when they renew their coverage this year.
The insurer joins Allstate and American Family in refunding some of the money it expects to save since its customers are driving less during the coronavirus pandemic, leading to fewer accidents and payouts.
Geico’s program applies to policies renewed between April 7 and Oct. 7, 2020, and it estimates the average discount on a semi-annual premium will be $150 per auto policy and $30 per motorcycle policy, resulting in a total benefit to customers of $2.5 billion.
Allstate has initiated an average 15 percent refund for current policyholders for at least April and May, while American Family is returning $50 per vehicle.
Along with these large consumer-oriented companies, Next Insurance has announced a 25 percent reduction to its April premium for commercial automotive plans.
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