Geico announced Tuesday that it would offer customers a credit on auto and motorcycle policies. The insurer described it as a way of helping customers pinched by loss of jobs during the Covid-19 epidemic and stay-at-home orders that have led to the massive loss of jobs.
When Allstate and a regional insurance company announced a similar move Monday, they ascribed the move to lower costs resulting from less driving.
Geico said the credits were expected to average $150 per auto policy and $30 per motorcycle policy. It said the credits would total about $2.5 billion. The credit will be automatically applied as policies are renewed.
The Geico Giveback as the company calls it, is expected to average $150 per auto policy and $30 per motorcycle policy.
Most Allstate customers will get back 15% of their premium for April and May, the company said. Allstate insurer is giving back more than $600 million.