Coronavirus NJ: Auto insurers hand out credits, rebates as drivers stay home

Apr. 11--Self isolation is paying off in at least one way.

New Jersey's auto insurers are providing credits and rebates to consumers in the wake of the coronavirus pandemic that has left all but essential workers homebound.

Among them are Geico, NJM Insurance Group and Progressive, which combined have nearly half of the state's market share.

Gov. Phil Murphy ordered nearly all of the state's residents to stay home and closed nonessential businesses on March 21, bringing new meaning to a traffic standstill.

It presumably has led to fewer auto accidents.

The result:

Geico, the state's biggest auto insurer with 22% of the market, said it would provide a 15% credit to auto and motorcycle customers when their policies come up for renewal between April 8 and Oct. 7. It also will apply to customers purchasing new policies.

It means a driver with a semi-annual premium of $1,000 can expect a credit of $150.

NJM Insurance Group, which has a 14.3% market share, said it would provide a 15% refund on the equivalent of three months of the annual premium.

Policyholders can expect to receive the money by a check or direct deposit in the coming weeks, the company said.

Progressive, which has 11.1% of the market, said it will provide a 20% credit for April and May, and it could extend the credits in the future.

Many New Jersey consumers are feeling the pinch. More than 576,000 workers have filed first-time unemployment claims during the past three weeks after their businesses at least temporarily were shut down.

The Murphy Administration on Friday required property and casualty insurers, which includes auto insurers, to provide a 90-day grace period for consumers who couldn't pay their premiums. It also required them to continue to pay claims during that period.

Consumers need to contact their insurance company to take advantage of the emergency grace period and to discuss options to pay their premiums over time after the grace period ends, the New Jersey Department of Banking and Insurance said.

Michael Diamond is a business reporter who has been writing about the New Jersey economy for 20 years. He can be reached at 732-643-4038; [email protected]; and @mdiamondapp on Twitter.

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