Farm Bureau Insurance of Tennessee said it will issue $30 million in special payments to its auto policyholders in the state in response to economic stresses caused by the coronavirus emergency.
The special payment is based on approximately 24% of two months auto premium paid for each vehicle covered. Auto policyholders should start receiving checks in May 2020. The insurer covers approximately 1.2 million automobiles in the state.
“During the state’s stay-at-home order, Tennesseans are driving less and are filing fewer automobile claims. While that trend may continue, and some insurers are taking a ‘pay it back’ approach, Farm Bureau Insurance is opting to ‘pay it forward,'” Chief Executive Officer Jeff Pannell said.
The payment program is funded from Farm Bureau Insurance reserve funds, which are set aside to protect policyholders in catastrophes such as tornado outbreaks and massive hailstorms.
“This situation certainly rates as a catastrophe. It’s not the kind of shock we typically plan for, but we’re glad the money is there to help,” Pannell said.
Farm Bureau Insurance of Tennessee, headquartered in Columbia, Tenn., is a single-state company that offers auto, home and life coverage to members of the Tennessee Farm Bureau Federation. Membership is available to all Tennessee residents.
Topics Auto Agribusiness
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