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Auto insurance companies paying it forward to customers

With less people out on the roads and less accidents, insurance companies are seeing a lot less claims.

DES MOINES, Iowa — In addition to the government stimulus check you'll be receiving, auto insurance agencies are also trying to give you a break in these unprecedented times of COVID-19.

"You probably could use some assistance, or some money right now so we're gonna write you a check," Clare Hendricks with American Family Insurance said. 

Since millions of people are sheltering in place, Americans are driving less.

"People are staying at home. Safer at home orders, stay at home orders, or people are working from home and they're not out on the roadways,' Hendricks said. 

That means, less accidents on the roadways and fewer claims being made to insurance companies.

Because of that, many car insurance companies are stepping in to add some relief.

RELATED: Coronavirus: Car insurers like Allstate, GEICO and Farmers are issuing refunds or policy rate cuts to drivers

"American Family Insurance decided to return $200 million across our 19 operating states to the customers who have those auto policies," Hendricks said. 

For Iowans with American Family Insurance, they'll receive a $50 check in the mail.

In response, we are taking the unprecedented action to help our customers by providing a one-time $50.00 payment for each personal automobile insured with us through our premium relief payment. The typical American Family household with auto coverage has two vehicles, meaning the average relief check will be $100.

Other auto insurers are doing the same.

Allstate is reducing their premiums for April and May by 15 percent.

GEICO is giving about a $150 credit to their policyholders.

USAA is reducing their premiums by 20 percent.

Farmers Insurance customers will see a 25 percent reduction to their premiums.

"Especially because so many people are out of work or are having those hard times, it really was a great opportunity for us to say, across the country, claims are down, let's give something back to our customers," Hendricks said. 

American Family will begin sending out 2.3 million checks to their customers. 

They said you'll be able to see those within the next 60 days.

RELATED: Parent: Ames schools aren't addressing learning for special needs students during COVID-19 pandemic

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