Liberty Mutual to Buy State Auto

Columbus, Ohio-based State Auto Insurance Companies (State Auto) and Rural Mutual Insurance Co., headquartered in Madison, Wis., have announced plans to offer auto insurance policyholders with premium relief as a result of the COVID-19 pandemic.

Because of the pandemic and stay-at-home orders, people are driving less and some auto insurers are responding. The two companies join others in the Midwest, as well as across the country, in offering support to policyholders, often in the form of discounts, rebates and/or refunds.

State Auto customers with personal auto policies as of June 1, 2020, will receive a 5% reduction on their entire policy premium at their next renewal, pending regulatory approval. The discount is one of three elements of State Auto’s In This Together Plan, which is focused on supporting customers through the duration of the COVID-19 pandemic.

Other elements of the plan include:

• Customers with State Auto Connect personal auto policies also have the opportunity to save an additional 10% right away by enrolling in the State Auto Safety 360 program, which adjusts auto insurance premiums based on how customers drive, and how much they drive. With safe driving and fewer miles driven, customers can grow the discount to as much as 50% at their next policy renewal. (Safety 360 availability and discounts vary by state.)
• As it has since the beginning of the outbreak, State Auto will continue to work with customers who need flexibility when it comes to payments and payment plans.

Rural Mutual will refund 15% on two months of personal auto premiums to all active auto insurance policyholders as of March 31, 2020.

The company said the refund, combination with the Rural Mutual Farm Dividend Program, will return approximately $3.5 million to customers in 2020.

Rural Mutual only does business in Wisconsin. As a result of the state’s shelter-in-place order, people have been driving less and Rural Mutual has received fewer auto insurance claims over the past month, the company said.