Auto Insurers Refunding Millions With People Staying At Home
With millions of Americans being told to stay home, the roads have grown increasingly empty. So Allstate and American Family Insurance have started discounting car insurance premiums being that many drivers aren’t using their cars.
Allstate has said that most customers can expect a 15% refund in April and May, while American Family Insurance is returning $50 per vehicle.
The Wall Street Journal reports that American Family customers drove 40% fewer miles in the last three weeks of March, resulting in fewer claims.
Allstate has estimated the program at $600 million, whereas American Family said it plans to return approximately $200 million to customers.
The two insurers were the first major companies to institute a blanket refund program, while others, including GEICO and State Farm, are encouraging customers to contact them to discuss their policies based on their new driving patterns.
While not all insurers are giving money back, many have extended their grace periods for late payments before canceling coverage.