Allstate and a regional insurer will refund hundreds of millions of dollars in car insurance premiums as the coronavirus pandemic has led home-bound Americans to drive less.Auto
Most Allstate customers will get back 15% of their premium for April and May, the company said. In total, the insurer is giving back more than $600 million.
American Family Insurance, a Wisconsin-based insurer, will return $200 million to customers, the firm said Monday. Each customer will get $50 per vehicle, and, in total, the insurer said its printing 2.3 million checks.
“Less driving means fewer accidents,” Allstate CEO Tom Wilson said in a statement. Fewer accidents means less an insurer has to pay out.
“Customers are not driving as much,” American Family CEO Jack Salzwedel wrote in a post on LinkedIn. “As a result, we believe theyve overpaid in their premiums. Its our duty to return that premium, because it belongs to them.”