San Antonio-based USAA, the country’s fifth largest property-casualty insurer, will be returning $520 million to its auto insurance policyholders because they’re driving less during the coronavirus pandemic.
Customers with insurance policies in effect as of March 31 will receive a 20% credit on two months of premiums in the coming weeks, the member-owned association said Wednesday. It will be automatically applied to customers’ bills.
Early data trends show USAA members are heeding stay-at-home orders and restrictions on nonessential travel, leading to fewer miles driven and fewer accidents, the company said.
“We understand the impact this pandemic is having on our country, and especially our military community and their families, many of whom also are working on the front lines of the crisis,” said USAA CEO Wayne Peacock in a statement. “Returning premiums provides timely help for our members.”
USAA provides insurance, banking and investment products to 13 million current and former members of the U.S. military and their families. It historically returns a portion of profits to members, sharing $2.4 billion in 2019.
It joins other auto insurers such as Allstate, Geico and Liberty Mutual in giving money back to their customers.
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