The average refund will be 15 percent of a customer's auto insurance policy for April and May.
There’s no question that Coronavirus is a dangerous illness exacting a tragic toll on human lives around the world. According to the latest data from the World Health Organization as of April 6, there are over 1.2 million confirmed COVID-19 cases around the world, with 67,767 lives tragically lost. Virtually everyone is affected in some manner, especially in the financial realm. Governments and some businesses are trying to help, with insurance company Allstate being the latest to step up. The company recently announced it will return over $600 million to its customers through April and May.
Allstate calls this the Shelter-in-Place Payback initiative, and the name pretty much says it all. With more people working from home and driving less, the company is seeing fewer accident claims. As such, it will refund auto insurance customers an average of 15 percent on premiums, based on the monthly premium for April and May. All total, Allstate says it amounts to a payout of over $600 million. According to a report from Automotive News, this applies to 18 million policies from Allstate as well as affiliate companies Esurance and Encompass.
With more people working at home and using more online services, Allstate’s initiative also gives people a free year of Allstate Identity Protection. This perk isn’t limited to just Allstate customers, however – it’s open to eligible U.S. residents who sign up for the service in April or May, regardless of their current insurance company. Lastly, Allstate offers delayed payment plans for those customers needing assistance.
According to Automotive News, Allstate analyzed data that showed current miles being driven have dropped between 35 and 50 percent in many states, regardless of shelter-in-place orders. The report also mentions California-based Next Insurance as discounting commercial auto premiums by 25 percent for April. Wisconsin-based Family Insurance will reportedly refund $200 million to its customers as well, also starting in mid-April.