Allstate to Return $600M in Premiums to Customers
Allstate announced that it will return $600 million in auto insurance premiums to customers because fewer motorists are on the road as a result of the new coronavirus.
The insurer will offer a “shelter-in-place payback” to its Allstate, Esurance and Encompass customers. Most policyholders will receive 15% of their monthly premium in April and May.
“We have access to data from over 23 million cars, and we can see the drop in driving by day,” Allstate CEO Tom Wilson said on a call with reporters Monday. “In most states, driving mileage is down 35 to 50%. And this has happened even in states that don’t have shelter-in-place restrictions.”
Allstate customers will receive the rebate through a credit to their bank account, credit card or on their Allstate account. The company is encouraging customers to use the Allstate Mobile app to receive the money. In addition, the company is offering payment relief plans to customers experiencing hardships associated with the coronavirus pandemic.
In addition, American Family Insurance announced it will return approximately $200 million to its auto insurance customers.