Geico joins Allstate, offers 15% insurance credit as coronavirus cuts driving

Geico will offer about $2.5 billion of credits to its 19 million auto and motorcycle policyholders, reflecting the decline in driving and therefore car crashes stemming from the coronavirus pandemic. The insurer, part of billionaire Warren Buffett’s Berkshire Hathaway conglomerate holding company, will offer a 15% credit on policies up for renewal between April 8 and Oct. 7. That averages up to about $150 per auto policy and $30 per motorcycle policy. Full details of Geico's Giveback Credit program can be found here.

The company has also paused cancellation of coverage due to non-payment and policy expiration through at least April 30, 2020 and potentially later depending on the state the policyholder lives in.

The announcement came one day after Allstate announced its Shelter-in-Place Payback program, which will return more than $600 million to policyholders, mostly through a payback of 15% of premiums for April and May on about 18 million policies.

Geico said vehicle accidents are down considerably, though it expects a return to near-normal levels as the pandemic subsides.

• Related: Consumer Federation: We're driving far less, insurance refunds should be much bigger