Auto insurance companies Allstate and American Family Insurance said they will give policyholders millions of dollars back because Americans are driving less during the coronavirus pandemic.
In a statement released Monday, Allstate announced it would return $600 million in premiums to customers. The company said most policyholders will get back 15% of their premium in April and May.
The credit will arrive either to their bank, credit card or Allstate account.
“This is fair because less driving means fewer accidents,” said Tom Wilson, Allstate chairman, president and CEO, in a statement.
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The company said it will also offer payment relief to eligible customers and will expand coverage for drivers who use their vehicles to make deliveries.
Meanwhile, American Family Insurance said it will return about $200 million to its policyholders because “they’re driving less and experiencing fewer claims,” said chief operating officer Telisa Yancy in a statement.
The company said they will make a payment of $50 per vehicle covered by one of their policies. The average relief check will be $100, said American Family.
The coronavirus pandemic has left many Americans stuck at home and driving a lot less. The sharp drop in driving has led to a plunge in gas prices over the past month. As of Tuesday, the national average gas price is $1.92, according to AAA. One month ago, the average was $2.40 per gallon.
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