Buffett's GEICO follows Allstate crediting auto, biker customer policies

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Warren Buffett's GEICO is joining other insurance companies discounting premiums on auto and motorcycle policies.

The coronavirus has customers driving less as they are under orders by local governments to stay home.

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Allstate Corp said on Monday that it would return more than $600 million in auto insurance premiums to customers.

GEICO is providing a 15 percent credit to its auto and motorcycle customers as their policy comes up for renewal between April 8 and Oct 7.

The credit will also apply to any new policies purchased during this period.

CORONAVIRUS PUSHES ALLSTATE TO RETURN $600M IN AUTO PREMIUMS

The average auto policy has a semi-annual premium of about $1,000 and generally covers more than one vehicle. It means credits are expected to average about $150 per auto policy and $30 per motorcycle policy.

GEICO has 18 million auto and one million motorcycle customers.

Current customers can expect to see the discount when they renew.

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“This ongoing crisis has widespread effects that will linger. That is why we wanted to give this credit for at least six months,” said GEICO President and CEO Todd Combs. “Our customers have been loyal, and we are committed to doing all we can to help them.”

Last month, GEICO announced it was pausing cancellations of coverage due to non-payment and policy expiration through at least April 30, 2020.