Wednesday, October 21st, 2020

American Family initiates Premium Relief Fund

Posted: Friday, April 24, 2020

For many of American Family Insurance customers the COVID-19 pandemic has brought struggles, both personally and financially. American Family is working hard to support their customers, implementing several measures to offer flexibility including payment deferral, removal of late fees and virtual claims handling options.

In addition to these options, the company continues to look for new ways to offer support to their customers during this crisis. Shelter-in-place orders and other social-distancing efforts have caused a notable decrease in the average miles driven per day by their customers and a subsequent decline in auto claims. This means fewer claim payments, as well as reduced risk.

As these trends continue, American Family Insurance projects approximately $200 million in loss savings for American Family Insurance. The business believes a meaningful and direct way to assist their customers now is to return that savings to them through the Premium Relief Fund. American Family sends customers who have an American Family-brand personal lines auto policy a one-time payment of $50 per vehicle. The typical American Family household with auto coverage has two vehicles, meaning the average relief payment will be $100.

“Our customers are truly at the center of everything we do. We are financially strong, and in a position to make an impact for our customers through the Premium Relief Fund,” says American Family chief operating officer Telisa Yancy. “We want to do our part to help during this trying time and continue being an industry leader in how we are giving back to our customers and communities.”

Relief payments will come in the form of personal checks. They will be made out to the named insured on the auto policy and mailed to the address on file. Employees, agents and agency staff who are American Family customers are eligible for the relief payments. Executives are not eligible.

Relief payments will be based on policies in-force as of March 11, 2020, the date the World Health Organization declared COVID-19 a pandemic. New business written after this date is excluded. The relief payments will be rolled out state-by-state, pending regulatory approval. The company is beginning with Wisconsin, where they recently received regulatory approval. They expect the entire process to take no more than 40 to 60 days as they work with state regulatory agencies, and print and mail more than 2.3 million payment checks.

Vehicles eligible for the relief payment include any family car schedule vehicles, as well as medium/heavy trucks. Ineligible vehicles are non-owner vehicles, cycles, campers, personal trailers, motor homes and specialty vehicles (golf carts, mini-trucks, personal mobility device, snowmobiles and tractors/farm machinery).

“We’re offering this one-time premium relief because it represents who we are as an organization,” says Yancy. “This direct relief payment to customers complements our support of communities through the Dreams Foundation and corporate matching. It’s another example of how we continue to put our values into action and protect our customers’ dreams.

For more on the Premium Relief Fund and relief payments, call Natalie Chevalier’s American Family Insurance office at (260) 244-5557.