Customers will benefit from an immediate 10% credit on personal auto insurance bills from July-December

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American Family boosts auto insurance premium relief. (Credit: everydayplus/FreeDigitalPhotos.net.)

American Family Insurance announced its plans to increase its premium relief for personal auto insurance customers to $425 million – all to be paid in 2020 – as a result of continued decreased driving and claims due to the COVID-19 pandemic.The plan includes $225 million in additional premium relief through a 10% premium credit on personal auto insurance policies in force during the period of July 1 through December 31, 2020, and expanded discounts. This follows the return of $200 million in premium to personal auto insurance customers in April.

“We received an outpouring of customer gratitude during our first round of premium relief. They told us they used the relief to buy groceries, address other important needs, and even give to charity,” said Telisa Yancy, American Family chief operating officer. “They inspired us to do more to immediately help them as reduced driving trends continue.”

Monthly bills for coverage within the July-December time period will reflect the 10% premium credit. Customers who have paid in full for coverage that extends into that time period will receive their credit via a check.

Premium credit will provide immediate relief

In April, American Family was the first insurer to announce premium relief for its customers, delivering checks for $50 per vehicle covered by an American Family personal auto policy. This time, the company decided to issue the 10% premium credit, which will reduce billed premium by varying dollar amounts commensurate with the type and amount of coverage selected by the customer.

“Issuing the premium relief to customers in their monthly bill rather than a rate reduction allows our auto customers to benefit immediately rather than waiting up to 12 months for their policy to renew,” Yancy said.

American Family has already received approval for its plan to issue premium credit from insurance regulators in Wisconsin, Arizona, Idaho, Indiana, Iowa, Kansas, Minnesota, Nebraska, Nevada, Oregon, South Dakota, Utah and Washington and has filed its plan in the 6 other states where it operates. Those other states are Colorado, Georgia, Illinois, Missouri, North Dakota and Ohio.

Additional support for customers and communities

Premium relief isn’t the only way the company is supporting customers during this uncertain time. American Family is also offering flexibility in several areas including payment deferral, payment plans, the removal of late fees, and suspending underwriting and non-renewal cancellations.

American Family has also extended private passenger automobile coverage to food delivery drivers hired by restaurants.

In addition, to support communities, the American Family Insurance group, the American Family Insurance Dreams Foundation and the Steve Stricker American Family Insurance Foundation is providing more than $6.8 million to COVID-19 relief and other non-profits, including through grants and a 2-to-1 match for charitable donations given by its agency owners and employees in their local communities. The company also has partnered with several sports teams, including the Green Bay Packers, to provide meals to frontline workers.

Source: Company Press Release