AAA Alabama Announces Additional $90 Million in COVID-Related Financial Relief for Auto Insurance Policyholders
Published 7:25 pm Sunday, January 31, 2021
AAA members who insure their vehicles through the Interinsurance Exchange of the Automobile Club and its affiliate insurers (Auto Club Enterprises Insurance Group) will receive an additional premium refund totaling approximately $90 million. Policyholders with auto insurance in effect from Oct. 1, 2020 to Dec. 31, 2020 will receive a 10% policy refund for this period.
This latest COVID-19 financial relief is in addition to almost $262 million in refunds provided in May and November, bringing the total amount returned to auto insurance policyholders to approximately $352 million. According to the publication S&P Global Market Intelligence, Auto Club Enterprises Insurance Group is one of only a few insurers in the country to provide additional premium refunds through to the end of 2020.
Refunds either will be applied as a credit to the member’s premium due or mailed as a check, depending on the region. Also, checks will be issued for policies that were canceled or that were paid in full. Members do not need to take any action to receive their refund.
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The additional relief package is due to continued reduced driving and fewer claims because of the ongoing pandemic. Auto Club Enterprises Insurance Group provides insurance for over 3.5 million vehicles through AAA clubs in 21 states, including Alabama.
“Ten months after the pandemic began, and with many people running out of assistance, COVID-19 continues to financially harm many people, including AAA members,” said John Boyle, President and Chief Executive Officer. “Since we are seeing fewer claims because of reduced driving in our markets, we believe it is important to provide additional help to members in these difficult times.”