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SAN ANTONIO - USAA, the country’s fifth largest property-casualty insurer, is returning an additional $280 million dividend to auto insurance policyholders based on fewer drivers on the road during COVID-19 stay-at-home orders. This follows last month’s announcement that USAA would provide a dividend of $520 million to its members as a 20% credit on two months’ worth of premiums. This new, additional credit will reflect 20% of a third month’s worth of premiums, and will be provided to all auto insurance policyholders with policies in effect as of April 30, 2020. In total, USAA has committed to returning $800 million in dividends to all auto insurance policyholders.
"During this time of uncertainty, we are proud to provide a second dividend to our auto policyholders,” said 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.”
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 $3.2 billion.
How the return works
Dividends have been executed for the prior announcement of $520 million, and members have already received these 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 May. 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 impact 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. The company has also provided financial relief to more than 620,000 members related to COVID-19, through an array of programs including:
Additionally, USAA has taken steps to help its employees stay safe and able to serve members by enabling nearly all 35,000 employees to work from home and committed $5 million to help military-focused and other nonprofits respond to this pandemic.
More information is available at www.usaa.com/coronavirus.
*Coverage does not apply to delivery through a Transportation Network Company app-based delivery.
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.