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These Car Insurance Companies Are Refunding Tons of Cash to Customers During COVID-19 Crisis

04-06-2020
Image Source: Adobe Stock
Image Source: Adobe Stock

The coronavirus pandemic has forced people to spend more time at home, resulting in a lot less driving. Now two insurance companies are recognizing how these changes are affecting Americans.

Allstate announced on Monday that it will refund auto insurers $600 million as many Americans are staying home and driving less amid the COVID-19 outbreak, which has led to fewer crashes and insurance claims.

In a statement, the company explained that a Shelter-in-Place payback will be offered and most customers will receive 15 percent of their monthly premium for April and May.

Allstate's CEO Tom Wilson said in a video that the company was taking action to put the people first.

"Because customers are driving less and having fewer accidents, we created the shelter-in-place payback to give our auto insurance customers more than $600 million back to help in these challenging times," he said.

Customers who are struggling financially are encouraged to call Allstate for a delay in making their monthly payments - without receiving a penalty.

And Wilson announced that identity protection will now be free since so many Americans are consumed with online activity. 

"Since so much of our daily lives are spent online, we are making Allstate identity protection free for the rest of the year," he added.

Allstate is also expanding insurance coverage for customers who are using their personal vehicles for work-related activities like food delivery or other business purposes.

And a smaller company, American Family Insurance (AFI), announced last Thursday that the company, along with American Family Insurance Dreams Foundation is supporting the community by providing more than $4 million in COVID-19 relief to meet urgent needs. 

Maggie Pascaly, American Family community investment manager said, "The pandemic has left many struggling to meet basic needs while at the same time adapting to a new and unsettling normal. We want to help meet short-term needs of individuals, families, and communities, while also addressing longer-term effects." 

AFI will also compensate auto insurance customers in a one-time payment of $50 per vehicle. The amount will mainly come from available funds from the two foundations.

Telisa Yancy, the company's chief operating officer said, "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."

To learn more about AFI's COVID-19 pandemic relief, click here

To learn more about Allstate's Shelter-in-Place Payback, click here.

 

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