Community Chat

[Mz iMac]

Auto insurers Allstate and American Family Insurance announced Monday they're giving back some $800 million in premiums to customers in recognition that many are not driving much during the novel coronavirus outbreak.

Why it matters: The payments their customers will receive are not vast amounts, but the "nature of the action is exemplary — and rare — given the context of a pandemic," notes the New York Times, which surveyed nine other auto insurance firms to see if they would follow their rivals' lead.

By the numbers: Allstate said most customers will receive 15% of their monthly premium in April and May as part of a "Shelter-in-Place Payback," totaling more than $600 million, as the firm noted that "less driving means fewer accidents."

• American Family will pay $50 per vehicle covered by clients' personal auto policy, costing about $200 million in total.

Of note: A Progressive spokesperson told the NYT that plans would be in place soon on "how to best return some premium to customers," while a USAA representative said the company was "exploring options" and an announcement was expected in "the coming days."

• A State Farm representative told the Times the firm was weighing "how best" to "return value to our auto insurance policyholders," with a decision expected by the week's end.

copy/paste link---> axios.com/auto-insurers-coronavirus-driver-refunds-2d405864-961c-44ef-9514-76510fd57c2e.html

I have not heard a word from MY auto ins carrier. 

[Goldengate8361]

A lot of companies are stepping up and putting good values WAY ahead of profits. It's truly great to see.

[kitcat51]

Interesting,...I already get a little break  because my ID is retired, so my premium is calculated on lower mileage. The refund will be nice  break for those who qualify. Thanks for sharing @Mz iMac. Be well.

[lovesrecess]

I will faint if State Farm gives us a dime.

[RoughDraft]

I received an e-mail about this from my Allstate agent about three days ago.

[Gorgf]

I can't see alot of money for private customers. When I retired I called to tell them I wasn't driving to work and saved a whopping $2.00 a month with A. Family. I only have 1800 miles on a new car owned 6 mos.

[gizmogal]

Holding out hope that The Hartford will discount my next premium payment or provide a similar modest refund. I took my AllState policy and moved it to The Hartford via AARP a number of years ago. My premium became much more affordable. 

Now I wonder if AARP will use its clout to favor many of us seniors and pressure Hartford Insurance to follow the other companies. I start my car to keep the battery conditioned, but I haven't driven anywhere in weeks.  So my insurance carrier is taking the full premium for much lowered exposure while I'm staying home. 

Show me the money!

[Kachina624]

I heard on the news last night that refunds will average $50.  Don't spend it all in one place.

[KCDiva]

---

@Kachina624 wrote:

I heard on the news last night that refunds will average $50.  Don't spend it all in one place.

---

$50? I’ll take it however i’m Pretty sure State Farm won’t offer it. 

[Jordan2]

I am with Allstate. I'm not counting on a refund, if it happens it will be nice.