Auto Insurers To Return Premiums Due To Less Driving Amid Covid-19
Auto insurers Allstate Corp. as well as American Family Insurance announced their plans to return some of auto insurance premiums, totaling $800 million, to customers citing less driving as more people are staying home amid coronavirus or Covid-19 crisis.
Allstate is providing a Shelter-in-Place Payback totaling more than $600 million. Most of its Allstate, Esurance and Encompass personal auto insurance customers will receive 15 percent of their monthly premium in April and May.
Allstate customers will receive the money back through a credit to their bank account, credit card or Allstate account. By utilizing the Allstate Mobile app, the customers can receive the payback in a faster way. The company also said it is working with state insurance regulators to move forward expeditiously.
Tom Wilson, Allstate Chair, President and Chief Executive Officer, said, “This crisis is pervasive. Given an unprecedented decline in driving, customers will receive a Shelter-in-Place Payback ….. This is fair because less driving means fewer accidents.”
Further, American Family Insurance, a smaller auto insurer, said it would return a total of $200 million to auto insurance customers starting in mid-April. The customers will get about $50 per car insured with the company.
Allstate added that its customers with financial challenges can delay payments without penalty. Further, the company is expanding insurance coverage for customers who use their personal vehicles to deliver food, medicine and other goods for commercial purposes.
Further, Allstate is offering free identity protection to all Americans with the heightened digital use as majority are staying home with shelter-in-place orders, resulting in increased exposure to cybercrime. All U.S residents who sign up will get the Allstate Identity Protection product for the rest of the year with no opt-out-requirement, regardless of whether they are already Allstate customers, by signing up in April or May.
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