As most Americans are not driving because of COVID-19, auto insurance companies are funding a total of $800 million dollars.
According to USA Today, Allstate, Liberty Mutual, and American Family Insurance are giving their policyholders a break, since the mandated quarantine is in place.
According to a statement released by Allstate, the insurance company announced it would return $600 million, and most policyholders will get back 15%.
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“This is fair because less driving means fewer accidents,” said Tom Wilson, Allstate chairman, president and CEO, in a statement.
The return will be credit back to their Allstate account, credit card, or bank.
Allstate also announced coverage expansion for those who use their vehicles to deliver products and/or food. In addition, as we previously reported, the insurance company is also working with policyholders who have been negatively impacted by the viral pandemic.
Liberty Mutual is also another insurance company showing grace. The company announced Tuesday that policyholders would receive 15% refund on their April and May premiums.
Today, more than ever, we recognize the uncertainty and financial challenges our customers are facing,” said Liberty Mutual Chairman and CEO David Long in a statement. “We remain dedicated to serving our customers during this unprecedented pandemic.”
American Family Insurance is also another insurance company showing its’ customers grace, during this pandemic.
Their policyholders will receive $200 million in returns. This is all because “they’re driving less and experiencing fewer claims,” said chief operating officer Telisa Yancy in a statement.
In addition, the auto company stated customers will receive $50 per vehicle, and they could even get a relief check of $100.
Also according to USA Today, State Farm is monitoring the situation and should have a plan of action by the end of week.
“We are closely monitoring our automobile insurance loss trends and are considering how best to take this into account and return value to our auto insurance policyholders,” said State Farm.”
Progressive and USAA are both exploring options to determine how to move forward, in order to help their customers during this time.
