NJM Insurance Group will be returning $41.7 million to policyholders as part of the NJM Policyholder Relief Program, the company announced Friday.
Under the program, NJM will refund 15% of the equivalent of three months of annual premium payments to personal auto insurance policyholders.
The company said policyholders can expect to receive their refunds, through a check or direct deposit, in the coming weeks — and that the 15% refund will be calculated based on an annual premium as of April 1.
“The coronavirus pandemic is an evolving public health issue and a matter of great concern for NJM and its policyholders,” CEO and President Mitch Livingston said in a release. “Our commitment to serving their needs remains our biggest priority, and we will continue to stand by them during this challenging time.”
NJM has operated as a mutual for the exclusive benefit of policyholders for more than 100 years. Livingston said the program is a natural extension of this commitment — and recognizes that coronavirus-related shelter-in-place restrictions have reduced driving across the region.
“The NJM Policyholder Relief Program helps ensure that the premiums paid by our policyholders recognize the changes they have been required to make in their daily lives,” he said.
Livingston said NJM is taking additional steps to assist policyholders, including extended premium payment deadlines and providing special payment options.
Other major insurance carriers — including Allstate, Farmers, Geico and Liberty Mutual — also have announced rebates.
Gov. Phil Murphy, saying no one should lose insurance if they can not pay it right now, said that holders of auto insurance (and other insurance) policies will have a 90-day grace period.
More information is available at njm.com/covid.