American Family boosts premium relief to $425 million
Customers will benefit from an immediate 10% credit on personal auto insurance bills from July-December
American Family Insurance announced today it plans to increase its premium relief for personal auto insurance customers to $425 million, including $225 million in additional premium relief through a 10% premium credit on personal auto insurance policies and expanded discounts.
American Family Insurance announced today it 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 received approval for its plan to issue premium credit from insurance regulators in the 19 states where it operates: Wisconsin, Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah and Washington.
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.
About the American Family Insurance group
Based in Madison, Wisconsin, American Family Insurance has been serving customers since 1927. We inspire, protect and restore dreams through our insurance products, exceptional service from our agency owners and employees, community investment and creative partnerships to address societal challenges. We act on our belief in diversity and inclusion by constantly evolving to meet customer needs and preferences. American Family Insurance group is the nation’s 13th-largest property/casualty insurance group, ranking No. 254 on the Fortune 500 list. The group sells American Family-brand products, primarily through exclusive agency owners in 19 states. The American Family Insurance group also includes CONNECT, powered by American Family Insurance (formerly Ameriprise Auto & Home), The General, Homesite and Main Street America. Across these companies the group has more than 13,500 employees nationwide.