Auto Insurance Companies Give Millions Back to Customers
Our roads are pretty empty nowadays thanks to everyone doing their part to stay home. One positive aspect of the shelter-in-place ordinance means that with fewer cars on the roads, there’s fewer accidents and in turn, fewer auto insurance claims.
On Monday, April 6, two auto insurance companies have said they are giving back to their customers and offering partial refunds on their insurance premiums. Allstate and American Family Insurance announced they would pass their savings onto their customers during this time, and since their initial announcements, other companies have followed suit.
Auto Insurance Refunds
Allstate is offering a Shelter-in-Place Payback; they plan to return $600 million in premiums to customers. Allstate says “most auto customers will get an average payback of about 15% based on monthly insurance costs during April and May.” The credit will arrive either to your bank, credit card or Allstate account. However, Allstate says you can get your payback faster through the Allstate Mobile App. Allstate says it is also offering everyone in the United States (yes, you don’t need to be an Allstate customer), free identity protection for the rest of the 2020.
American Family Insurance is giving their customers $50 per vehicle, totaling about $200 million in refunds.
Thankfully, as expected, other auto insurances are getting on board with the premium refund plan. Announced today, April 7, Liberty Mutual, Safeco Auto Insurance, and Geico are matching Allstate’s refund package, and similarly giving their customers 15% refunds on two months of their premiums, totally return $250 million to consumers.
According to USA Today, as of 4/7, Progressive is yet to announce a refund plan, but says it’s in the works. State Farm and USAA are also exploring their options.
In addition to reducing or refunding the premium payments, many car insurance companies have put in place protections to help lessen their customers’ financial burdens, such as waiving late fees and penalties, grace periods for missed payments and payment plans.
