Latest Coronavirus Coverage

Many auto insurers to issue partial premium refunds or credits

Apr 22 2020, 4:07 PM

More than 40 additional auto insurance companies have filed plans to return premiums or reduce their rates for Vermont policyholders, which will amount to over $14.6 million in savings for Vermonters to date, according to the Department of Financial Regulation.

All Vermont-based auto insurance companies, along with most major out-of-state insurers, have developed refund plans which when combined, represent approximately 90% of all personal auto policies in Vermont. Each of these insurers has seen a reduction in claims as more Vermonters stay home complying with the governor’s order. 

“I’m grateful the insurance industry is acknowledging the reduced risk of auto claims as a result of the Stay Home, Stay Safe order,” Gov Phil Scott said. “These reduced rates provide additional relief at a critical time for many Vermonters.”

The premium savings will vary depending on the company, the department said in a statement, but most Vermonters can expect to receive a credit on their auto insurance statement, a refund check or a reduced rate when renewing their policy. Most relief is expected to be in the range of 15-20% for a period of two or three months. 

Vermont Mutual and the Cooperative Insurance Company will allow customers to donate their refund to charities assisting with local Covid-19 relief efforts. Union Mutual has partnered with local businesses to provide food for the homeless, as well as for medical workers and nursing home staff members in Vermont.

Department of Finance Regulation Commissioner Mike Pieciak continues to encourage insurance companies to determine whether Vermonters are overpaying and promptly file a plan with the department if that is the case. For a list of insurance companies with DFR-approved premium savings plans, please visit the department’s website.

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