More than 7 million people in the military and veteran communities who purchase their vehicle insurance through USAA will see an additional credit on their insurance bills starting in late August, company officials announced Tuesday.
The credit will amount to 10 percent of up to two months’ worth of premiums, and it will be automatically provided to all those who had USAA auto insurance policies in effect within the months of June and July. For example, if you pay $100 a month for insurance, your credit would be $20 for the two months, so your bill would be $180.
You don’t need to take any action to receive the credit. If you have questions about it, you should use USAA’s chat feature or call in, said USAA spokesman Matt Harwig.
“Giving money back to our members, especially now when budgets are stretched, is another way we are helping,” USAA President and CEO Wayne Peacock said in the announcement. “We see that members are driving less than when the pandemic hit. As these patterns unfold, we are adjusting our auto insurance rates.”
A number of auto insurers have been providing credits to their customers during the pandemic, including Geico, State Farm, Nationwide, Travelers, Allstate, Farmers Insurance and others. People have been driving less and the number of claims have decreased.
This new USAA credit will amount to an additional $270 million provided to its members in the form of credits on their auto insurance bills, bringing the total since the pandemic began to $1.07 billion, officials said in their statement. Earlier this year, the company announced credits totaling $800 million, as a 20 percent credit on three months’ worth of premiums.
USAA is the country’s fifth largest property-casualty insurance company, with 13 million members. Those who are eligible are current and former military members, their spouses and children.