Coronavirus: Geico to give auto customers $2.5 billion as driving declines

Warren Buffett’s Geico plans to offer insurance-policy credits to its auto customers as driving declines because of the widespread coronavirus-related shutdowns.

File photo used for representational purpose only (REUTERS)
File photo used for representational purpose only

Geico, owned by Buffett’s Berkshire Hathaway Inc., will provide a 15% credit to its auto and motorcycle customers when their policies come up for renewal between April 8 and Oct. 7, the insurer said in a statement Tuesday. That translates to a total benefit to consumers of about $2.5 billion, the company estimates.

The announcement follows similar moves by rivals Allstate Corp. and American Family Insurance, which are returning money to customers. Allstate Chief Executive Officer Tom Wilson said there’s been a roughly 35% to 50% decline in driving in most states, a drop that could translate into fewer accidents that the auto insurer would have to cover. Earlier Tuesday, Liberty Mutual Insurance announced plans to give customers refunds totaling about $250 million.

Also check these Vehicles

Find more Cars
Mahindra Xuv300 Turbo Sport (HT Auto photo)
₹10.35 - 12.9 Lakhs***Ex-showroom price
Add to compare
Check latest offers
Mercedes-benz Amg E53 Cabriolet (HT Auto photo)
2999 cc | Petrol | Automatic
₹1.3 Cr**Ex-showroom price
Add to compare
Maruti Suzuki Ytb (HT Auto photo)
UPCOMING
₹7 - 11 Lakhs* *Expected Price
View Details
Maserati Mc20 (HT Auto photo)
₹3.69 Cr***Ex-showroom price
Add to compare
Check latest offers
Maruti Suzuki Baleno (HT Auto photo)
1197 cc | Petrol | Manual
₹6.5 - 10 Lakhs***Ex-showroom price
Add to compare
Check latest offers
Maruti Suzuki S-presso (HT Auto photo)
₹4.25 - 5.99 Lakhs***Ex-showroom price
Add to compare
Check latest offers

Also Read : This company is offering one month free auto insurance amid lockdown in India

Geico’s credits will also apply to new policies purchased from early April to early October. The insurer said that the shutdowns tied to the spread of Covid-19 have cut down on customers’ driving, with a bounce-back expected once the virus’s spread subsides.

“This ongoing crisis has widespread effects that will linger," Geico CEO Todd Combs said in the statement. “That is why we wanted to give this credit for at least six months."

First Published Date: 08 Apr 2020, 12:15 PM IST
Recommended for you
View all
NEXT ARTICLE BEGINS
Shopping Bag Shop Now
55% OFF
SOFTSPUN Microfiber Cloth - 4 pcs - 40x40 cms - 340 GSM Grey- Thick Lint & Streak-Free Multipurpose Cloths - Automotive Microfibre Towels for Car Bike Cleaning Polishing Washing & Detailing…
Rs. 269 Rs. 604
21% OFF
Involve Your Senses One Musk Organic Car Perfume, Involve Your Senses Strong Fiber Air Freshener to Freshen'up Your Car - IONE01-40 g,Car Accessories interior car perfumes and fresheners
Rs. 315 Rs. 399
73% OFF
pTron Bullet Pro 36W PD Quick Charger, 3 Port Fast Car Charger Adapter - Compatible with All Smartphones & Tablets (Black)
Rs. 349 Rs. 1,299
13% OFF
Jopasu Car Duster
Rs. 754 Rs. 869

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city