04/10/2020
Dear customers,
Several of you have called because youâve heard on the news and social media that American Family is sending a $50 check to you. This is true. You do not need to do anything. You will receive a paper check in the mail in the next few weeks. Below are some frequently asked questions about the checks. Please note that our local office is extremely busy with the volume of calls this is generating. Thank you for your patience. ď
If you think this is awesome, and you would like to show American Family that, please do a 30 second review. Amfam is watching reviews and the social media response. ď
How much am I getting?
$50 per car that you insured with American Family as of March 11, 2020âthe date the World Health Organization declared Covid-19 a pandemic.
What vehicles do not count?
Motorcycles, Campers, Motor homes, Golf Carts, Snowmobiles, Tractors (including policies on lawn tractors used at a residence), and commercial autos do not qualify and are not included.
When will I get my check?
Within the next 60 days. Please note that this is being handled by our corporate office. Our local office does not have access to when your check was sent, where it was sent, how much it was for, etc. Please wait to receive your letter & check for details.
Why is American Family doing this?
With Covid-19, there are significantly less drivers on the road, which means fewer accidents. American Family is saving money by not having to pay for accidents. We estimated that during the 8 week period, we will save $200 Million in claim payments. Our CEO and leadership team made the decision to refund that to policy holders.
Will this cause my rates to go up?
This money is basically coming from our âsavings accountâ that we would have used to pay claims. We do not anticipate that this will impact your rate. We already had this money in our budget for the year. With that being said, rates are fluid and they are based on âmoney paid out vs. money paid in.â If we have a big hail storm later this year, or if there are significantly more accidents after everyone starts driving again, of course that is all factored in.
Can I just subtract $50 from my bill?
No. This is a separate check that we are doing that does not have anything to do with your insurance rate. We wanted to do a separate check so that everyone could decide what they wanted to do with the money. I have heard from many of you that you were laid off, and that times are tough. This is what American Family is doing to help.
Why didnât you just lower my insurance rate instead of sending me a $50 check?
Rates are set where they need to be in order for us to pay our expected future costs. Keeping a stable rate is important for everyone. At this point, we expect this pandemic to be a one-time event versus an ongoing event. Instead of reducing rates (which would have taken at least 6 months for us to get approved by the insurance commissioners in every state, and then waiting until your 6 or 12 month renewal date to realize the savings)âŚwe decided that a one time payment as immediate relief to our customers was the best choice.
Do I need to sign up anywhere?
No. The check will be sent automatically.
Can you direct deposit the money?
No. We wanted to get the money out as fast as we could, and we did not have time for our I/S department to organize electronic deposits. Gathering all that would take time, whereas we could print and send checks very quickly.
Why did I get multiple checks?
If you have one vehicle insured as John & Jane Doe, another under just Jane Doe, and a third under just John Doe, you will get 3 checks. Again, we did not have time to spend I/S hours cleaning up the list. Rather, we wanted to push out the checks as quickly as possible to our customers.
What address will the check be sent to?
The check will be sent to the mailing address associated with that particular policy.
Can the check be sent to a different address?
No. It will be mailed to the mailing address that we had on file for you as of March 11, 2020.
I am having trouble paying my car insurance right now because I was laid off or otherwise financially impacted by Covid-19. What can I do?
First of all, I want all of you in this situation to know that we feel for you, we are listening, and we will work with you. You can call our corporate office billing department at 1-800-692-6326, option 2 for billing. They will assess the situation and can possibly offer an extension. Please note they will not waive your payment. That is considered ârebatingâ and is against the law in MN and ND.
