Insurance Companies To Return Portion Of Premiums Due To Shelter In Place Orders

Allstate Corp, one of the largest U.S. auto insurers, said on Monday it would return more than $600 million in premiums to customers as many Americans drive less due to stay-at-home orders aimed at curbing the coronavirus outbreak.

Most customers will receive a “payback” of 15% of their monthly premium in April and May, the company said.

State Farm and Progressive Insurance Corp, also among the largest U.S. auto insurers, are also looking into the driving decline and its potential impact on premiums.

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MDarringer - 4/7/2020 11:40:40 AM

-4 Boost

The better way would be to have tacked that onto a lower premium renewal or to give a free month.

Agent009 - 4/7/2020 4:30:48 PM

+4 Boost

Well you know the math still works in their favor but it stops class action lawsuits.

MDarringer - 4/7/2020 4:47:36 PM

-2 Boost

A class-action lawsuit would not be arguable in this situation.

PUGPROUD - 4/7/2020 1:09:39 PM

+4 Boost

Smart PR and brand building/loyalty corporate move under current circumstances.

MBguy - 4/7/2020 9:21:05 PM

+2 Boost

Allstate says "the amount being returned will be better facilitated if you have the app on your phone."

It sounds like it's just a way to get vehicle location tracking data for all of their customers!