USAA returning insurance premiums
- May 7, 2020
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In another case of doing well by doing good, USAA has announced that it is returning $520 Million to it’s members:
USAA, the country’s fifth largest property-casualty insurer, will be returning $520 million to its members. This payment is a result of data showing members are driving less due to stay-at-home and shelter-in-place guidance across the country. Every member with an auto insurance policy in effect as of March 31, 2020, will receive a 20% credit on two months of premiums in the coming weeks.
As a member-owned association, USAA historically returns a portion of profits to members. In 2019, we returned $2.4 billion in dividends, distributions and bank rebates and rewards. This brings the total amount returned to members since January 2019 to nearly $3 billion.
Some of us are old enough to remember when most insurance companies were member-owned- which means that the policy holders “own” the company – and this sort of rebate was more common, every year. Perhaps your rates would be higher, but unused proceeds would be paid back to members. It’s nice to see some of these insurance firms going back to their roots and taking care of their owner-members.
As their CEO puts it:
“We understand the impact this pandemic is having on our country, and especially our military community and their families, many of whom also are working on the front lines of the crisis. Returning premiums provides timely help for our members,” said USAA President and CEO Wayne Peacock. “USAA has been facilitating the financial security of military members for nearly 100 years, and this is another way we can serve them well.”
Let’s hope other insurance firms follow suit!