Expect refunds from auto insurers

Apr. 20--Expect a pleasant surprise from your auto insurance company as refunds should be coming soon to compensate for decreased driving during the shelter-at-home era.

Major insurers of auto policies have all announced refunds of at least 15 percent for at least April and May.

"All auto insurers should be recognizing the reduced driving consequence of the pandemic and be returning a portion of premiums," New Mexico Superintendent of Insurance Russell Toal said in a news release. "Our office will continue to monitor auto insurer practices, and if necessary, will issue an order that applies to all auto insurers."

So far, GEICO has the most generous refund offer with a 15 percent credit covering a customer's full six-month or 12-month policy rather than just April and May.

State Farm has the highest percentage refunds among the major insurers serving New Mexico, with most customers on average getting a 25 percent credit from March 20 to May 31.

Allstate customers will get a 15 percent refund for April and May that will be deposited on the credit card most recently used to make a payment.

AAA will send a refund check for 20 percent by the end of May covering the period March 16 to May 15.

"We recognize the extreme financial toll the COVID-19 pandemic is taking on AAA members across the country. It has impacted many of our members' livelihoods and changed their routines," AAA CEO John Boyle said in a news release. "This is one important way we have been working to help AAA members."

Progressive will issue a 20 percent premium credit for April and May, as will USAA.

Safeco has put in a 15 percent refund for two months based on the premium amount in place April 7. Travelers committed to a 15 percent credit on April and May premiums.

Toal noted these insurers also complied with his request to refrain from canceling or not renewing due to nonpayment because of factors related to COVID-19.

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