With stay-at-home orders leading to fewer drivers on the road, USAA announced Thursday it is returning another $280 million to policyholders’ accounts on top of a credit the insurer announced in April.
Last month, USAA returned $520 million to its more than 7 million policyholders in the form of a 20 percent credit on two months’ worth of premiums.
The new, additional return reflects a 20 percent credit on a third month’s worth of premiums and will be provided to all auto insurance policyholders with policies in effect as of April 30.
With this additional respite, USAA has returned $800 million to auto insurance policyholders worldwide.
“During this time of uncertainty, we are proud to provide a second dividend to our auto policyholders,” stated Wayne Peacock, USAA president and CEO. “It’s the heart of our mission to serve members every day and when they need us most, a commitment that we’ve made to the military community for nearly 100 years.”
The move comes after the USAA Bank faced criticism in mid-April for seizing bank customers’ federal stimulus deposits to cover existing debts. The bank has since reversed course and is ensuring members with negative balances and closed accounts will receive access to their full stimulus payment.
USAA is also offering special payment plans for members experiencing financial difficulties and the company’s investment management business has reduced managed portfolio fees 50 percent through May 20.
As a member-owned association, USAA annually returns a portion of profits to members in the form of dividends and distributions. In 2019, USAA and various subsidiary companies returned to its members nearly $2.4 billion, an amount which included bank rebates and rewards.
The company also has committed $5 million to help military-focused and other nonprofits respond to this pandemic.
