Berkshire Hathaway's Geico to credit its vehicle policyholders

Berkshire Hathaway Inc.’s Geico insurance said late Tuesday it will give its auto and motorcycle policyholders a 15% credit on their bills as their policies come up for renewal between Wednesday and Oct 7. The credit will also apply to new policies bought in the same period, Geico said. The company said the average auto policy has a six-month premium around $1,000, and generally covering more than one vehicle, so it expects to credit on average about $150 per auto policy and about $30 per motorcycle policy. The company estimated that the benefit to its 18 million auto and 1 million motorcycle customers will be around $2.5 billion. “Shelter-in-place policies have reduced driving significantly. Vehicle accidents are down considerably, and although Geico expects a return to near-normal once the impacts of COVID-19 subside, Geico remains committed to serving its customers’ changing needs in the best way it can,” the company said in a statement. Geico in March said it was pausing coverage cancellations due to non-payment and policy expiration through at least April 30. Allstate Corp. and privately owned American Family Mutual Insurance Co. on Monday announced similar credits due to pandemic.