USAA’s pandemic-related auto policy rebates top $1 billion
Stars and Stripes August 5, 2020
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USAA, the insurance company with armed forces roots, will return an additional $270 million to its 7 million auto policy holders amid the continuing coronavirus pandemic, the company announced Tuesday evening.
This pushes the total rebates from the San Antonio-based company since the start of the pandemic to well over a billion dollars.
The financial services and insurance company, which provides insurance and banking services to more than 13 million active-duty military members, veterans and their families, returned $580 million in auto policy rebates in April, and another $280 million in May, each totaling 20% of members’ monthly premiums.
The most recent rebate reflects up to a 10% discount on two months’ worth of premiums, according to a statement posted to the company’s website Tuesday. The rebate impacts members with auto policies in effect for the months of June and July.
The company said its members continue to drive less due to the continued effects of the coronavirus.
“Giving money back to our members, especially now when budgets are stretched, is another way we are helping,” said USAA President and CEO Wayne Peacock in the statement. “We see that members are driving less than when the pandemic hit. As these patterns unfold, we are adjusting our auto insurance rates.”
Dividends for the previous coronavirus rebates have already been applied to customers’ bills, the statement said.
The new rebates will be automatically applied to members’ next billing cycle and no further action is required to receive the dividend, according to the statement.