Auto insurers offer returns during coronavirus pandemic
Customers will get a one-time payment of $50 per vehicle
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Some auto insurers have promised to return money to policyholders as fewer people are driving on the nation's roads due to the coronavirus pandemic, which has prompted many cities and states to issue "shelter-in-place" orders.
Allstate announced Monday it will return $600 million to customers amid the COVID-19 outbreak. Most customers will receive a return of 15 percent of their monthly premium in April and May, the company said. Allstate customers will receive the money through a credit to their bank account, credit card or Allstate account, according to the insurer.
Meanwhile, American Family Insurance is slated to return $200 million in premium relief to customers over the course of the next two months. Overall, the company projects it will print and distribute approximately 2.3 million checks to policyholders across 19 states starting this week.
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“American Family Insurance is doing this out of responsibility to our customers. They are driving less and experiencing fewer claims. Because of these results, they deserve premium relief,” American Family chief operating officer Telisa Yancy said.
Customers will get a one-time payment of $50 per vehicle covered by an American Family personal auto policy, the company announced Monday. Payments will be based on personal auto policies in force as of March 11, 2020, the date COVID-19 was deemed a pandemic by the World Health Organization.
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"We are financially strong, and in a position to provide these payments to our customers at a time when it makes a meaningful difference," Yancy added.
Customers in Wisconsin are slated to receive payments first.
Shortly after, payments will be sent to customers across the company’s additional 18 operating states, "pending approval from their insurance regulators" the company said.
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The auto insurance industry is among the scores of sectors working to offer relief as financial uncertainty continues to mount for individuals and families around the world.