AAA giving back $100 million in auto insurance refunds during coronavirus shutdown

Sacramento Bee (CA)

Apr. 11--AAA -- Northern California is handing out a total of $100 million in auto insurance premiums refunds to its customers because stay-at-home orders throughout the state have kept many drivers off the road to slow the coronavirus spread.

The insurance company has received fewer auto insurance claims since last month, when local and statewide health directives told residents to stay home and only leave to do essential chores or essential work.

"With many facing financial hardship during these challenging times, this refund is a natural step in serving our members when they need it most," Tim Condon, president and CEO of AAA Northern California, Nevada & Utah, said in a news release Friday.

The refunds will benefit insurance customers at AAA Northern California and other AAA clubs that partner with CSAA Insurance Group. Customers with an active policy as of April 30 will receive a 20 percent refund by May 31 for two months of auto premiums.

AAA said the refund program will continue to be evaluated based on the length of the stay-at-home orders, according to the news release.

Other insurers are offering customers similar refunds.

On Thursday, Nationwide informed its insurance customers it was offering a one-time premium refund of $50 per policy for personal auto insurance policies active as of March 31. Nationwide customers will receive the refund automatically credited to their most recent method of payment within the next 30 days.

"We are offering this rapid relief at a time when many drivers are making the right choice to stay off the road and remain home to help 'flatten the curve,'" according to the notice from Nationwide.

Sacramento County's stay-at-home order, which began March 19, has been extended through May 1 to slow the spread of coronavirus, which causes the COVID-19 respiratory disease. The county's order mirrors Gov. Gavin Newsom's statewide "shelter in place" order to protect those most vulnerable to the infectious disease.

All AAA Northern California branch offices remain closed. Members who need help can call AAA Member Services at 800-922-8228.

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