With millions of Americans under strict instructions to stay home to contain the spread of the coronavirus, people are driving far less frequently than usual. While this is proving beneficial for the environment, it also means many motorists are paying for car insurance they don’t really need.
Thankfully, at least two insurance companies in the United States have announced they will pass on some of the savings they’re making with fewer insurance claims to customers.
NPR reports that Allstate will send out no less than $600 million in premium refunds. All 18 million drivers with Allstate auto policies will be receiving 15 per cent of their premium, credited straight into their bank account, credit card or Allstate account. In addition, Allstate is offering free identity protection to all U.S. residents, something it says is important given the rise of virtual meetings and classes.
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“This is about fairness,” Allstate chief executive Tom Wilson said on Monday, stating that driving mileage is down 35-50 per cent across the country. “This is about doing it and not waiting to be asked.”
Elsewhere, American Family Insurance will be sending out checks of $50 per car to more than 2 million customers in the U.S in a move totaling roughly $200 million.
While many other insurance companies have yet to announce rebates like these, some are allowing customers to adjust premiums on a case-by-case basis for motorists who are suddenly not driving.
Reuters reports that State Farm and Progressive Insurance are also considering ways to return premiums to customers.
