Auto Insurance Companies Returning $800M In Premiums During COVID-19: 5 Things To Know
With so many Americans struggling after losing their jobs due to COVID-19, auto insurance companies are doing their part to help. Allstate and American Family Insurance have both pledged to return a combined $800 million in premiums to customers, ABC News reported.
Allstate said it would return $600 million to customers, while American Family Insurance said it would return $200 million. Other companies have followed suit. Here are 5 things you should know about the refunds.
Dubbed the “Shelter-In-Place Payback” program, Allstate will return 15 percent of monthly auto insurance premiums to customers in April and May.
“We’re going to treat them fairly. What we concluded is in catastrophes … you gotta add quickly and you gotta put people first,” Wilson told CNBC. “They can have (refunds) in their credit card their checking account and so we worked ot give them money back encause they really need it at this point in time
American Family Insurance will offer customers a one-time $50 payment per vehicle to auto insurance customers.
“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,” Chief Operating Officer Telisa Yancy said in a statement.
Geico, Liberty Mutual and Safeco will also offer auto customers 15 percent refunds. Liberty Mutual will also pause cancellations due to non-payment and late fees.
“This ongoing crisis has widespread effects that will linger,” said Geico president and CEO Todd Combs in a statement. “That is why we wanted to give this credit for at least six months.” Geico will also halt cancellation of coverage because of non-payments.
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Allstate is also offering payment relief and free identity protection to customers for the rest of the year.
“Our lives have become very virtual, whether you’re a third-grader going to school online or you’re working from home, we’ve moved into the digital world and as a result of that hacking opportunities are up,” Wilson said. “You look at the coronavirus phishing attempts, it’s up 600 percent right now. … So we thought people are more at risk so let’s just give them free identity protection.”
People who are still driving are driving faster, so be careful on the roads.
“The people who are still driving are driving a little faster. Maybe that’s cause nobody’s there but we don’t know whether they will have more accidents,” Wilson said.
Customers should contact insurance carriers for more information.