PURE: COVID-19 Reduced Mileage Automobile Premium Credit


The last several months have brought unprecedented challenges for so many of our members, colleagues, and you, our partners. We are grateful for your continued professionalism and partnership as we work together to serve our shared policyholders.

We wanted to provide an update following our announcement in March regarding reduced automobile usage among our membership resulting from the COVID-19 pandemic.

These circumstances highlight the value of our reciprocal model and the alignment of interests with our membership that it affords. At the core of that alignment is our commitment to return any premiums left over (after claims and expenses are paid) back to members’ Subscriber Savings Accounts (SSAs). Over the years we have allocated over $100 million back to the membership, inclusive of our most recent allocation of $22 million for the 2019 calendar year. Returning what insurers generally consider “underwriting profit” back to the membership is not a one-time thing for PURE—it is at the heart of our structure.

Despite the efficiency and natural alignment of SSAs, we recognize the unusual circumstances surrounding automobile insurance in 2020.

Reduced driving resulting from the pandemic impacts two-thirds of PURE members who choose to insure their automobiles with us. With that in mind, we are going beyond our structural commitment to SSAs and are providing premium credits to members who have regular use Automobile policies with PURE. Members in states that issued stay-at-home orders can expect a 15% premium credit to apply for the duration of the order. For members in states where no stay-at-home order was issued, or where stay-at-home orders lasted less than 30 days, we will offer a premium credit of 15% for a 30 day period.

Below you will find answers to some frequently asked questions on the credit process. Note that state-by-state regulatory approval is ongoing. For current information on state specifics, please visit the information hub on the home page of PURE Online, which will be updated regularly.

Who is eligible for this premium credit?

Premium credits will be offered to all members who purchase Automobile insurance from PURE for regular use vehicles. Vehicles rated as Collector Cars will not be eligible for these credits.

How will the premium credit be calculated?

For Automobile policies written in states where stay-at-home orders were issued, members will receive a 15% premium credit on their Automobile premium and surplus contribution for the duration of the order. The exact amount of the credit will vary by state and how long the stay-at-home order was in effect. Note that certain states have also mandated other requirements, with which PURE will comply.

For Automobile policies issued in states without stay-at-home orders or where stay-at-home orders lasted less than 30 days, PURE will provide a credit of 15% for a 30 day period.

How will PURE handle states in which stay-at-home orders are being lifted on a local basis?

In these states, we will use the date on which the majority of PURE’s membership was impacted by the stay-at-home orders being imposed and lifted.

How will members be notified?

All members will be notified of the premium credit by US Mail. Letters will be sent on a state-by-state basis.

How will the premium credits be delivered to members?

Members who have paid in full will receive a credit via the last form of payment they used with PURE. Members with outstanding balances will receive a credit to their outstanding balance, which will be reflected on their next bill.

The premium will be processed as a transaction on a member’s Automobile policy. If a policy renewed during the credit period, the credit will be spread across both policy terms.

How will the premium credits impact broker commission?

Once the endorsement transaction is made to process the credit, the commission will be impacted as it would for any premium bearing transaction. The change will be reflected in the broker’s commission statement following the effective date of the transaction. For example, credits issued in July will be reflected in August commission statements.

Our Member Services team is available to assist our shared policyholders and your Sales & Marketing Manager is your best point of contact if you have any questions.