The coronavirus pandemic has impacted almost every segment of the U.S. economy. All have felt the sting of the shelter at home ordinances around the country.
Because of that, many of the top insurance companies have decided to cut their members a break. One of those leading the charge is USAA, who announced last week it was giving back in a big way by returning $520 million to its members.
“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.
Returning premiums provides timely help for our members,” USAA President and CEO Wayne Peacock said in a statement.
“USAA has been facilitating the financial security of military members for nearly 100 years, and this is another way we can serve them well.”
Every USAA member with an auto insurance policy that was in effect as of March 31 will receive a 20 percent credit on two months of premiums.
Colonel Christopher Washington, a native of Lawton, has carried USAA insurance for 23 years. So, this type of act was expected.
“I wasn’t surprised,” said Washington. “They seem to always give back.”
According to USAA, members will automatically receive a credit applied to their bill. No additional action is required.
USAA says the data shows its members are heeding the calls to stay at home to prevent the spread of COVID-19. Because of that, they are driving less, which is leading to fewer accidents as well.
“It was a pleasant surprise,” said Joe Mack, a multimedia marketing representative in Tahlequah. “Now I’m starting to hear more about insurance companies doing the same type of thing.”
Mack has felt the hit the economy has taken in Oklahoma. To get money put back in his account is needed at this time.
“Every bit of savings helps,” Mack said. “My wife, a medical assistant at the hospital, works in a specialized department that has seen a 90 percent decrease in patient load over the last six weeks. Being hourly, that impacted us directly.”
Matthew Porter, a physician in Florida, knows how much this gesture can mean to all families.
“We, like most, but maybe not as much as many others, have seen a drop in income, which makes things like paying bills difficult,” said Porter, who has been a member for 16 years. “Especially as it related to student loans. Now all of my loans are in deferment, private loans have not done this.”
Along with its 20 percent credit deduction, USAA has other policies in place to help its 13 million members during this difficult time. They include making special payment arrangements to assist members experiencing financial difficulties, expanded auto insurance coverage for members who use their personal vehicles to deliver food, medicine and other goods for commercial purposes.
USAA also stated it will not cancel members’ auto or property insurance policies or charge fees due to late payments through June 17.
“Putting people over profit says a lot about any organization,” Washington said. “Especially a bank.”
Mack, who has been with USAA for 15 years, says he will use the savings to either pay off credit cards or just roll it over into the next auto policy premium.
“USAA is all about commitment and service,” Mack said. “This gesture underscores those values.”
Other insurance companies now offering refunds as well include Allstate, Farmers, Geico, Liberty Mutual, Nationwide, Progressive and State Farm.