Auto insurers will return hundreds of millions of dollars to Americans because of coronavirus
Allstate and American Family Insurance have made discounts on car insurance premiums and will refund some of the money because many drivers do not use their cars, largely due to quarantine aimed at slowing down the spread of coronavirus. Writes about it Fox News.
Allstate said most customers can expect a 15% reimbursement in April and May, while American Family Insurance will return $ 50 per car installment.
“We are doing this right now, when our customers are most in need of money,” said American Family CEO Thesis Yancy.
Over the past three weeks of March, American Family customers drove 40% less miles, which led to a decrease in the number of calls to insurers.
Allstate valued the return program at $ 600 million, while the American Family said it would return approximately $ 200 million to its customers.
The money will go either to a bank account, to a credit card or to an account with an insurance company, writes USA Today.
“That's fair because less driving means less crashes,” said Tom Wilson, chairman of Allstate, president and CEO.
The company said it would also offer payment facilitation to relevant customers and extend insurance coverage for drivers who use their vehicles to make deliveries.
State Farm said it will decide on premiums by the end of the week. “We are closely monitoring trends in the field of automobile insurance and are considering how best to return part of the money to our customers,” said a company representative.
Progressive said it was exploring "how best to return some of the insurance policy money to customers."
Many insurers have also extended grace periods for late payments.
The coronavirus pandemic has left many Americans stuck at home and less likely to travel. A sharp drop in driving has led to a sharp drop in fuel prices over the past month. As of Tuesday, April 7, the national average price for gasoline is $ 1,92. A month ago, the average price was $ 2,40 per gallon (3,8 L).
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