Auto Club members who insure their vehicles through the Interinsurance Exchange of the Automobile Club will receive additional premium refunds totaling approximately $59 million. This latest COVID-19 financial relief is in addition to almost $92 million in refunds provided in May, bringing the total amount returned to Auto Club auto insurance policyholders to approximately $151 million.
Prior refunds were issued for the period between March 16, 2020 and May 15, 2020. Under this new relief package, every policyholder with auto insurance in effect from May 16, 2020 through July 31, 2020 will receive a refund check equal to 10% of the premium paid for this period. We expect to mail refund checks in August. Members do not need to take any action to receive their refund.
For more than 20 years, the Interinsurance Exchange has paid annual dividends to auto insurance policyholders in California. Combined with this new and prior premium refunds, the Auto Club anticipates that the amount returned to California policyholders in 2020 will total over $419 million.
The new relief package is due to less driving and fewer claims because of the ongoing pandemic.
“The coronavirus threat is still impacting Auto Club members, causing financial hardship and changing daily habits and activities,” said John Boyle, President and Chief Executive Officer. “We are pleased to be able to provide additional help to AAA members in Southern California.”
Free Roadside Assistance Continues for First Responders and Medical Personnel
The Auto Club is also helping communities by continuing to provide medical personnel and front-line first responders free roadside assistance, including help with vehicle breakdowns, lock-outs, battery problems, and flat tires. Medical personnel and first responders who need free roadside assistance can call 800-400-4222.
One Million Dollar United Way Donation Helping Communities
The Auto Club’s extra $1 million donation to United Way in April is being used to bolster COVID-19 relief efforts nationally, including in communities across Southern California. These funds have provided rental/utility payment assistance to families, personal protective equipment to healthcare workers, financial support for homeless services, hygiene and food kits for students and their families, and thousands of books for low-income students. With other corporate contributions, and contributions from our employees, we donated more than $2.5 million to United Way this year to respond to community needs.
For more information, members can visit AAA.com.