on Monday, Allstate announced that it would kick back about 15 percent of April and May's premiums to drivers. "Given an unprecedented decline in driving, customers will receive a Shelter-in-Place Payback. This is fair because less driving means fewer accidents," CEO Tom Wilson said.
Allstate calls this the Shelter-in-Place Payback initiative, and the name pretty much says it all. With more people working from home and driving less, the company is seeing fewer accident claims. As such, it will refund auto insurance customers an average of 15 percent on premiums, based on the monthly premium for April and May.
One study by researchers at the University of California-Davis estimates that crashes in the state have dropped by 50 percent since the stay-at-home order was issued in mid-March.
https://www.motor1.com/news/408263/allstate-refunding-customers-coronavirus-relief/
https://www.thedrive.com/news/32809/the-auto-insurance-industry-is-making-a-killing-as-everyday-people-struggle
update, friday:
Geico, who said that it will be reimbursing its auto and motorcycle policyholders with a total of $2.5 billion. It will also offer a 15 percent credit on policies that are up for renewal between April 8 and October 7, which comes out to about $150 for each auto policy, and $30 for motorcycle policies.
USA Today also checked in with State Farm, which said it’s expected to make a statement by the end of the week, and Progressive is figuring out how to return some amount of premium to drivers, as well, “to reflect the decreased exposure that comes with less frequent driving.”
https://www.autoweek.com/news/industry-news/a32067261/insurance-companies-return-car-insurance-premiums/
USAA said they will give a 20% credit for 2 months of premiums. About $520 million in total.
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