Buckle up Allstate auto insurance customers! You may be getting some money back. Allstate, along with American Family Insurance, announced they will return a total of $800 million to their customers because people are driving far less during the coronavirus crisis.
“Given an unprecedented decline in driving, customers will receive a Shelter-In-Place Payback,” Allstate CEO Tom Wilson said. “This is fair because less driving means fewer accidents.”
- Allstate will refund 15 percent of its customers’ April and May premiums ($600 million total).
- American Family will also give back $50 per insured car ($200 million total).
- Both companies said customers experiencing financial hardship can delay premium payments without penalty if they contact the companies.
In all likelihood, Allstate will still come out ahead due to the expected 85-percent reduction in insurance claims. American Family will probably save even more.
Could it have been more? Yes. Still, the goodwill gesture is a solid first step that other insurance companies, like Geico and Progressive, are likely to follow. So take heart, America: that hunk of metal that’s been sitting in your driveway for the past three weeks might just save you some cash.