Some Auto Insurance Companies Are Refunding Customers During Pandemic
If your car has been sitting on the driveway for weeks and you have forgotten what it’s like to pump gas, you are not alone. Some data from auto insurance companies shows that people are driving 35-40% less in the last few weeks. That means less accidents and less claims for auto insurance companies.
CNN says that Allstate and American Family Insurance will give some of those savings back to policy holders. The announcement came on Monday. The two companies are expected to give back $800 million to their auto insurance customers.
Allstate will refund about 15% of premiums paid by its customers in April and May. That should be a total of about $600 million for customers. The refunds will go to customers with personal auto insurance only, regardless if their state has any kind of stay-at-home order.
American Family on the other hand said it will send refunds to all customers. Policy holders will receive $50 per car via a one-time payment. American Family expects to pay out about $200 million.
Other insurance companies are likely seeing the same drop in auto claims. Hopefully they follow in Allstate’s and American Family’s footsteps and provide some relief to customers during the coronavirus pamndemic.