(KMOX) - Multiple insurance companies have announced they'll be returning hundreds of millions of dollars in automobile premiums as drivers are on the road less due to the coronavirus pandemic.
Allstate and American Family Insurance announced they would be returning a combined $800 million to customers.
If you're an Allstate customer you'll be getting a 15% "payback" of your monthly premium this month and next month. American Family Insurance promised to give back about $50 per car, through a one-time payment for households that are insured through the company.
We’ve been helping customers overcome unknowns for 89 years. And this year has been no exception. That’s why we’re doing more than ever to help customers in these challenging times. Find out more in the Allstate app or https://t.co/SfmQ8O5D0T. pic.twitter.com/EECxfwQSqR
— Allstate (@Allstate)
April 6, 2020 Other large insurance companies like State Farm and Progressive are thinking about doing the same thing for their customers.
Insurance data analytic company and consumer advocate, ValChoice, released a special market report that estimates insurance companies could realize $100 billion in windfall profits due to the change in driving habits forced by shelter-in-place mandates.
Titled “COVID-19 Windfall Profits Estimated at $100B for Car Insurers,” the report says it's the result of millions of vehicles that are now parked in garages and driveways, which translates into hundreds of thousands of fewer accidents and billions of dollars in claims that won’t have to be paid.
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