USAA says it will return $520 million to its members due to coronavirus lockdown

USAA says it will return $520 million to its members due to coronavirus lockdown

USAA, a financial services and insurance company with a large military clientele, announced Wednesday it will return $520 million to its members who are now driving less due to shelter-in-place procedures enacted to combat the coronavirus.

USAA, which serves more than 13 million active-duty military members, veterans and their families, said its customers will receive a 20% credit on two months of premiums in the coming weeks if they had an auto insurance policy in effect on March 31. USAA is one of several companies slashing premiums on auto insurance, including Allstate, Liberty Mutual and American Family Insurance.

USAA will not cancel members’ auto or property insurance policies or charge late fees on auto and property insurance coverage through June 17, according to the statement.

“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,” said USAA president and CEO Wayne Peacock in the statement.

“Returning premiums provides timely help for our members,” he said. “USAA has been facilitating the financial security of military members for nearly 100 years, and this is another way we can serve them well.”

The decision to return funds to customers was based on data showing that USAA members are driving less due to the pandemic.

No action is required by members who will automatically see the credit applied to their bill, the statement said.

Additionally, the company has enacted special payment arrangements to assist members experiencing financial difficulties.