Insurance Holiday

An insurance holiday is a temporary suspension of premium payments or policy benefits, usually initiated by the insurer or regulator during emergencies such as COVID-19. Insurers like Allstate and State Farm offered insurance holidays by refunding or pausing auto premiums for periods ranging from 30 to 90 days in April 2020.

An insurance holiday does not automatically extend your coverage period, as insurers resume regular billing after the designated timeframe. During an insurance holiday, claim filing may be restricted depending on the insurer’s policy; for example, some life insurers paused non-essential medical requirements but allowed death benefit claims, as confirmed by YourInsurance.info (Your Insurance Info).

Policyholders must meet eligibility criteria for insurance holidays–such as being current on premium payments at the time of initiation–set by specific insurers including Geico and Progressive. Insurance holidays do not cancel policies but temporarily adjust financial obligations while maintaining certain coverages.

Insurers notify customers through emails, app alerts, or mailed letters with detailed terms about their specific insurance holiday offers. State regulations determine if an insurer can implement an insurance holiday; for instance, California’s Department of Insurance mandated premium relief in March 2020 for auto and commercial policies.

Insurance holidays mainly apply to auto, health, or life policies, with documented examples including MetLife and Nationwide issuing partial refunds for auto customers. Insurance holidays do not erase past-due amounts unless expressly stated–insurers typically require repayment of suspended premiums once normal billing resumes.

Customers should confirm with agents or customer portals whether an active insurance holiday applies to their policy type and state before discontinuing payments.