Members with coverage through this insurer last year will be receiving an additional refund.
AAA has announced that members who had auto insurance in effect from October 1, 2020 through December 31, 2020 will be receiving additional coronavirus financial relief.
These policyholders will receive a 10 percent policy refund for the length of that coverage period.
The coronavirus financial relief is being issued to AAA members whose vehicles are covered through the Interinsurance Exchange of the Automobile Club as well as its affiliate insurers. The company’s total refund to all eligible policyholders will total about $90 million. This amount is above and beyond the nearly $262 million in refunds that the insurer had already issued from May through November. This will bring the total refund amount to about $352 million.
According to S&P Global Marketing Intelligence, the Auto Club Enterprises Insurance Group – affiliates of the Interinsurance Exchange of the Automobile Club – is among the only American car insurance companies to provide refunds to its policyholders right up until the close of last year.
The coronavirus financial relief refunds will be issued as a check or applied as a credit to the premium.
AAA has said that its members will receive their refunds in the form of a credit against their premiums due, or they will be mailed a check, this depends on the region where the insured resides. Policies that have been cancelled or that have been paid in full will be issued a check for the refund. To receive a refund, members don’t have to do anything. It will occur automatically.
The insurer decided on the additional refund because it reflects the reduced number of claims as a result of the ongoing COVID-19 pandemic.
“Ten months after the pandemic began, and with many people running out of assistance, COVID-19 continues to financially harm many people, including AAA members,” explained AAA CEO and President John Boyle. While discussing the reasoning behind the additional coronavirus financial relief. “Since we are seeing fewer claims because of reduced driving in our markets, we believe it is important to provide additional help to members in these difficult times.”