Two auto insurance companies are giving over $800 million in premium refunds to their customers as the coronavirus from China reduces travel.
The first of these auto insurance companies is Allstate (NYSE:ALL). The company says that it will be returning $600 million to customers due to the decrease in travel from stay-at-home orders. However, it’s worth noting that this will be for all customers, not just those in states with the orders.
Here’s what Allstate has to say about the refunds.
“Most customers will receive 15% of their monthly premium in April and May, totaling more than $600 million. Customers will receive the money back through a credit to their bank account, credit card or Allstate account.”
The second of the auto insurance companies offering premium refunds is American Family Insurance. This will have the insurance company sending back roughly $50 per car to policyholders. That will bring the total amount of refunds to about $200 million.
The following is American Family Association’s statement on the coronavirus premium refunds.
“In response, we are taking the unprecedented action to help our customers by providing a one-time $50.00 payment for each personal automobile insured with us through our premium relief payment. Why? Because with fewer cars on the road these days, there are less miles being driven and that means there will be fewer accidents. We want to return the savings to you.”
So what about other auto insurance companies? Currently, none of them are offering refunds of this nature to their customers. Although it’s possible this may change in the near future as they follow suit with Allstate and American Family Insurance, reports CNNBusiness.
As of this writing, William White did not hold a position in any of the aforementioned securities.