Erie Insurance announced two hundred million dollars in direct dividend payments for car insurance customers on top of a reduction in premiums.
This new relief brings the total effort to four hundred million dollars.
Fortune 500 company Erie Insurance announced that it will provide two hundred million dollars in direct rebates to both personal and commercial auto insurance customers.
“We felt something more immediate should be done for our customers. Something that could make a bigger impact in the days and weeks ahead oppose to the months ahead,” said Tim Necastro, President and CEO of Erie Insurance.
Earlier this month the company announced a two hundred million dollar effort in rate reductions for auto insurance customers.
The dividend, which is an addition to the two hundred million dollars in rate reduction, represents about 30% of the auto insurance premiums for a two month period or five percent of a customers annual premium.
Necastro attributes the relief effort to the company’s financial strength.
“Over 95 years, we’ve made a lot of really good decisions and choices that put us in a good financial set and really for preparations for times like these. This is what a durable insurance company is built to do,” said Necastro.
The company will mail out more than 2.5 million checks to customers which should be distributed in mid May.
“The connection we have with our customers is really important to us and on that is worth investing in. It’s very consistent with who we are and very important that we’re standing ready to take care of our customers and agents that sit in our communities,” said Necastro.
Erie Insurance is also offering two and a half million dollars to agents in branch offices to allow them to make donations to local charities hurt by the COVID-19 pandemic.