Insurance company GEICO, which has a local office in Orange, is providing a 15 percent credit to its auto and motorcycle customers as their policy comes up for renewal between April 8 and Oct. 7. The credit will also apply to any new policies purchased during this period. The credit is part of GEICO’s ongoing efforts to assist customers during the crisis caused by COVID-19.
“This ongoing crisis has widespread effects that will linger. That is why we wanted to give this credit for at least six months,” said GEICO president and CEO Todd Combs. “Our customers have been loyal, and we are committed to doing all we can to help them.”
The average auto policy has a semi-annual premium of about $1,000 and generally covers more than one vehicle. This means GEICO expects credits to average about $150 per auto policy and $30 per motorcycle policy. The company estimates the benefit to its 18 million auto and one million motorcycle customers will be approximately $2.5 billion.
Current customers can expect to see the discount when they renew. Customers do not need to take any action to receive this credit.
Shelter in place policies have reduced driving significantly. Vehicle accidents are down considerably, although GEICO expects a return to near normal once the impacts of COVID-19.
Last month, GEICO announced it was pausing cancellations of coverage due to non-payment and policy expiration through at least April 30. Beyond that, the company has committed to offering maximum flexibility to policyholders who need special payment options as well as transitioning nearly all of its associates to work from home.