Today we announced that we’re providing credits of approximately $1 billion in premium to Progressive personal auto customers as a result of fewer claims that come with less frequent driving.
Subject to approval by state regulators, Progressive personal auto customers who have a policy in force as of April 30 will be credited 20% of their April premiums in May and personal auto customers with a policy in force as of May 31 will be credited 20% of their May premiums in June. We estimate that the sum of these two credits will total approximately $1 billion. We may offer additional credits in the upcoming months.
Customers will not need to take any actions to receive the benefits. The credits will be applied automatically to the customer’s policy and those customers who have paid in full will receive a payment of the credited amounts. Please be assured that this action will not affect commission payments. Customers will see it reflected in their accounts within a few weeks after month end.
If they have a balance on the policy, we’ll apply the credit directly to the remaining balance. And if they’ve already paid in full, we’ll return the money to the payment account we have on file—please make sure your customers’ payment details are up to date.
Progressive CEO Tricia Griffith explained, “We understand how difficult and uncertain people’s lives are right now. While auto insurance might not be the most pressing topic on everyone’s mind, we know that finances could be. For our customers who have trusted us to be there in their times of need, we’re fulfilling that promise. We want them to know how much we care. Always guided by our core values, doing the right thing is vitally important to us. We know that by sticking together and taking care of one another during these difficult times, we’ll come through this stronger. We want our current customers to remain our future customers.” We’ll continue to monitor the effects of the coronavirus situation and share updates as needed as we look for additional ways to help agents, customers, and our communities move forward. In fact, we’re finalizing plans on a number of initiatives designed to help you, our agent partners, during this time—look for additional information next week.
In the meantime, be well and stay safe. Thank you for partnering with Progressive.