The COVID-19 pandemic has significantly altered daily life, including driving habits across the United States. Recognizing these changes and the resulting financial pressures on families, American Family Insurance is taking proactive steps to support its auto insurance customers. The company announced it will return approximately $200 million in premium relief to personal auto insurance policyholders.
Telisa Yancy, COO of American Family Insurance, Discusses Car Insurance Relief for Customers
“At American Family Insurance, we believe in acting responsibly for our customers,” stated Telisa Yancy, chief operating officer of American Family Insurance. “With fewer people on the roads and a decrease in claims due to altered driving patterns, it’s only right that our customers receive premium relief. They are driving less, and consequently, experiencing fewer incidents that lead to claims. This premium refund is a direct result of these changed circumstances and our commitment to fairness.”
This customer relief initiative will be executed through a one-time payment of $50 for each vehicle covered under an American Family personal auto insurance policy. For a typical household insured with American Family, holding coverage for two vehicles, this translates to an average relief of $100. The company is set to distribute these payments efficiently, aiming to dispatch 2.3 million checks within a 60-day period, while adhering strictly to social distancing guidelines for the safety of everyone involved in the process.
Further insight into the company’s customer-first philosophy is available in a LinkedIn post by Chief Executive Officer Jack Salzwedel. In his post, Salzwedel elaborates on how this customer support action aligns with the core values and long-standing history of American Family Insurance.
“Our customers are the foundation of everything we do,” Yancy emphasized. “American Family Insurance is in a strong financial position, which enables us to provide these relief payments to our valued customers. We recognize that this support comes at a crucial time and can make a meaningful difference in their lives.”
The distribution of checks began in Wisconsin, the home state of American Family Insurance, following approval from the state’s Office of the Commissioner of Insurance. Payments to customers in the other 18 states where American Family operates will follow, contingent upon regulatory approvals from each state’s insurance authorities.
Eligibility for this premium relief is based on personal car insurance policies active as of March 11, 2020. This date marks when the World Health Organization officially declared COVID-19 a pandemic. Policies initiated after this date are not included in this relief program.
Beyond this direct premium relief, American Family Insurance is extending additional support to customers and communities during these challenging times. The company is offering considerable flexibility regarding payment options, including deferred payment schedules and customized payment plans. They have also waived late payment fees and implemented a temporary suspension of underwriting-related and non-renewal cancellations, ensuring continuous coverage for policyholders facing financial uncertainties.
Understanding the evolving needs during the pandemic, American Family Insurance has also broadened its private passenger auto insurance coverage to include drivers working for restaurants to deliver food. This extension acknowledges the increased reliance on delivery services and supports those undertaking such roles during this period.
In a broader community support effort, the American Family Insurance group, along with the American Family Dreams Foundation and the Steve Stricker American Family Insurance Foundation, has committed over $6.8 million to COVID-19 relief and various non-profit organizations. This commitment includes a 2-to-1 matching program for charitable donations made by American Family agency owners and employees within their local communities, amplifying the positive impact at a grassroots level.
“We are committed to playing our part in navigating through these unprecedented times,” Yancy stated. “We aim to be an industry leader not just in providing excellent car insurance, but also in demonstrating how companies can give back to their customers and the communities they serve.”
American Family Insurance’s operational footprint spans across 19 states: Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, Nevada, North Dakota, Ohio, Oregon, South Dakota, Utah, Washington, and Wisconsin.
Customers seeking further details about the relief payment can visit www.amfam.com/relief-payment for comprehensive information and answers to frequently asked questions.
About American Family Insurance Group
Headquartered in Madison, Wisconsin, American Family Insurance has been a trusted name in the insurance industry since 1927. The company’s mission is to inspire, protect, and restore dreams through a range of insurance products, exceptional customer service delivered by agency owners and employees, strategic community investments, and innovative partnerships aimed at addressing societal challenges. American Family embraces diversity and inclusion, continually adapting to meet the evolving needs and preferences of its diverse customer base. American Family Insurance group ranks as the nation’s 13th-largest property/casualty insurance group and is positioned at No. 306 on the Fortune 500 list. The group primarily markets American Family-brand products through exclusive agency owners across 19 states. The American Family Insurance group’s portfolio also includes CONNECT, powered by American Family Insurance (formerly Ameriprise Auto & Home), The General, Homesite, and Main Street America, collectively employing over 13,500 individuals nationwide.
