Kentucky Farm Bureau Insurance providing auto policyholders total of $53 million in relief and rate cuts in 2020
Returning dividends of $21 million amid coronavirus pandemic in addition to company’s $32 million in auto rate cuts introduced this year
LOUISVILLE, Ky. (April 13, 2020) – Continuing in its efforts to help alleviate the financial pressures its members are facing related to the coronavirus, and in recognition that Kentuckians are driving their vehicles less often while observing social distancing practices, Kentucky Farm Bureau (KFB) Mutual Insurance Company announced today that it is returning a total of $21 million in dividends to its automobile policyholders. Customers are also receiving auto premium rate reductions in 2020 valued at $32 million, providing members with a total of $53 million in auto insurance relief this year.
This monetary return to customers comes on top of KFB Insurance’s decision made almost four weeks ago to temporarily suspend policy cancellations for non-payment of premium.
“Our company was formed to serve the people of Kentucky during their times of need,” said John Sparrow, Executive Vice President & CEO of KFB Insurance, “and I am hard-pressed to think of a time of greater need than what we are facing right now during this global pandemic. This effort to put money back in the pocket of our members, especially when they are using their vehicles less than usual, is absolutely the right thing to do.”
To make a direct, cash-in-hand impact on its members, KFB Insurance will issue a $25 dividend check for each motor vehicle currently insured by the company. Combining both its personal and commercial policy counts, KFB Insurance has approximately 840,000 vehicles insured across the state – meaning the company will provide roughly $21 million back into the hands of its customers.
KFB Insurance’s longer-term solution to financial relief for its members focused on rate reductions to its auto premium in 2020. This effort went in effect prior to the COVID-19 pandemic, but the overall release of these changes comes with very positive timing. These rate cuts are activated at the customer’s policy renewal date and produce an overall $32 million decrease in auto customers’ total premium paid this year.
“Kentucky Farm Bureau Insurance is designed to face disasters head-on and help our customers recover after the unexpected happens,” added Sparrow. “As Kentucky’s largest property and casualty insurer, and a mutual company, it is our responsibility to acknowledge the pressures felt by our members today and respond in a responsible, compassionate manner.”
For additional information on the ways KFB Insurance is responding to the coronavirus pandemic, visit kyfb.com/covid19.