Allstate Announces It Will Return $600 Million in Car Insurance Premiums to Customers
American insurance company Allstate has announced it will return more than $600 million in premiums to its auto customers as fewer motorists are on the road amid the coronavirus outbreak.
The Illinois-based insurer made the announcement Monday on its website, citing “challenging times” for customers and a decline in overall driving during the coronavirus pandemic.
“Allstate has been helping customers overcome catastrophes for 89 years since our purpose is to make sure they are in Good Hands. We have learned to move quickly and put people first,” Allstate CEO and president Tom Wilson said in a news release.
“This crisis is pervasive. Given an unprecedented decline in driving, customers will receive a Shelter-in-Place Payback of more than $600 million over the next two months. This is fair because less driving means fewer accidents. We are also providing free identity protection for the rest of the year to all U.S residents who sign up, since our lives have become more digital.”
A “Shelter-in-Place Payback” will see Allstate, Esurance and Encompass customers receive financial relief for the months of April and May by way of a 15 percent refund of their monthly premium.
Allsate uses technology to track the driving habits of 23 million of its customers and found that overall driving has declined by between 35 and 50 percent in most states, Yahoo Finance reported.
We’ve been helping customers overcome unknowns for 89 years. And this year has been no exception. That’s why we’re doing more than ever to help customers in these challenging times. Find out more in the Allstate app or Allstate.com.
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According to the company, refunding 15 percent of all premiums will equate to a total of more than $600 million back in the pockets of customers in the weeks to come.
“Customers will receive the money back through a credit to their bank account, credit card or Allstate account. The fastest way for customers to receive this payback is to utilize the Allstate Mobile app,” the company announced. “We are working with state insurance regulators to move forward expeditiously.”
The company said it wishes to assist those suffering the financial repercussions of the pandemic by offering no-cost identity theft and financial fraud protection, which will run through 2020.
As an added bonus, the company has further committed to helping its customers by offering a payment relief program.
“Allstate customers experiencing financial challenges can call Allstate to learn how to delay payments without penalty,” the statement read.
“The Special Payment Plan gives auto and homeowners insurance customers the choice to delay two consecutive premium payments. Customers also can choose to pay what they can afford.”
The company is also expanding coverage for customers who are currently using their personal vehicles to deliver essential supplies such as food, medicine and other goods that are generally only covered under commercial policies.
To support our customers during the COVID-19 state of emergency, Allstate will automatically cover those who use personal vehicles to deliver food, medicine and other goods for a commercial purpose. Learn more about how we are supporting our customers. allstate.com/covid.aspx
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The Chicago Tribune reported the Wisconsin-based American Family Insurance company will join Allstate in returning portions of premiums to customers currently driving less due to lockdowns around the country.
The company will return around $200 million to its customers in the form of paper checks.
“American Family Insurance is doing this out of responsibility to our customers. They are driving less and experiencing fewer claims. Because of these results, they deserve premium relief,” COO Telisa Yancy said in a news release.
American Family Insurance will issue a one-time full payment of $50 for each vehicle covered on its auto policies.
The company says it expects to print and distribute 2.3 million checks within 60 days.
Allstate Announces It Will Return $600 Million in Car Insurance Premiums to Customers
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April 07, 2020
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