SAN ANTONIO, Aug. 4, 2020 /PRNewswire/ -- USAA, the country's fifth largest property-casualty insurer, is returning an additional $270 million dividend to auto insurance policyholders. This follows earlier announcements that USAA would provide dividends totaling $800 million to its members as a 20% credit on three months' worth of premiums. This new, additional dividend will reflect 10% of up to two months' worth of premiums and will be provided to all auto insurance policyholders with policies in effect within the months of June and July. In total, USAA has now committed to returning $1.07 billion in dividends to all auto insurance policyholders due to continued fewer drivers on the road.
"Giving money back to our members, especially now when budgets are stretched, is another way we are helping," USAA President and CEO Wayne Peacock said. "We see that members are driving less than when the pandemic hit. As these patterns unfold, we are adjusting our auto insurance rates."
As a member-owned association, USAA historically returns a portion of profits to members. In 2019, USAA and various subsidiary companies returned nearly $2.4 billion in dividends, distributions and bank rebates and rewards. This brings the total amount returned to members since January 2019 to over $3.4 billion.
How the return works
Dividends have been returned for the prior announcements of $800 million, and members have already received credits to their accounts. Similarly, members will automatically receive the additional dividend as a credit applied to their auto and property insurance account in late August. Members do not need to call, and no further action is required to receive the dividend.
Ways USAA is providing financial relief for members
The return of auto dividends, which impacts more than 7 million members with auto insurance, is just one of the many steps USAA is taking to provide financial assistance during this time. USAA continues to provide COVID-19-related financial relief to its members through an array of programs including:
- USAA Property and Casualty Insurance is offering special payment arrangements on property and auto insurance. Members can extend past-due insurance payments over a 12-month period.*
- USAA Property and Casualty Insurance is offering extended auto coverage for members using their personal car to deliver food, medicine and other goods for their employers because of business operations changes due to COVID-19.**
- USAA Bank is offering payment assistance programs available for eligible members on credit cards, consumer loans, mortgages and home equity loans and lines of credit. We are also providing specific assistance for deposit accounts.
- USAA Bank, for active member deposit accounts, is temporarily helping to ensure members with negative balance accounts have access to their CARES Act stimulus funds.
- USAA Life Insurance Company is offering special payment arrangements on health and life insurance policies.***
Additionally, USAA has taken steps to help its employees stay safe and continue to serve members by enabling nearly all 35,000 employees to work from home through 2020. USAA and The USAA Foundation, Inc. has committed more than $10.7 million to nonprofits across the country responding to the coronavirus pandemic by donating to Military-focused nonprofits and nonprofits in USAA campus communities.
More information is available at www.usaa.com/coronavirus.
Founded in 1922 by a group of military officers, USAA is among the leading providers of insurance, banking and investment and retirement solutions to more than 13 million members of the U.S. military, veterans who have honorably served and their families. Headquartered in San Antonio, Texas, USAA has offices in seven U.S. cities and three overseas locations and employs more than 35,000 people worldwide. Each year, the company contributes to national and local nonprofits in support of military families and communities where employees live and work. For more information about USAA, follow us on Facebook or Twitter (@USAA), or visit usaa.com.
*Available for a limited time. Some restrictions apply. Offer may vary by location.
**Coverage does not apply to delivery through a Transportation Network Company app-based delivery.
***Options may vary by state and may be subject to state regulatory requirements.
Dividends are subject to approval by the Board of Directors of the company issuing the dividend, in its sole discretion. There is no guarantee or promise of future auto insurance dividends.
Use of the term "member" or "membership" refers to membership in USAA Membership Services and does not convey any legal or ownership rights in USAA. Restrictions apply and are subject to change.
USAA means United Services Automobile Association and its affiliates. Life insurance and annuities provided by USAA Life Insurance Co., San Antonio, TX, and in NY by USAA Life Insurance Co. of New York, Highland Falls, NY. Other life and health insurance from select companies offered through USAA Life General Agency, Inc. (known in CA (license #0782231) and in NY as USAA Health and Life Insurance Agency). Banking products offered by USAA Federal Savings Bank and USAA Savings Bank, both FDIC insured. Trust services provided by USAA Federal Savings Bank.
USAA Media Relations