Auto insurance coverage firms Allstate and American Household Insurance coverage mentioned they may give policyholders thousands and thousands of again as a result of People are driving much less through the coronavirus pandemic.
In a press release launched Monday, Allstate introduced it will return $600 million in premiums to clients. The corporate mentioned most policyholders will get again 15% of their premium in April and Could.
The credit score will arrive both to their financial institution, bank card or Allstate account.
“That is truthful as a result of much less driving means fewer accidents,” mentioned Tom Wilson, Allstate chairman, president and CEO, in a press release.
The corporate mentioned it can additionally supply fee reduction to eligible clients and can broaden protection for drivers who use their automobiles to make deliveries.
In the meantime, American Household Insurance coverage mentioned it can return about $200 million to its policyholders as a result of “they’re driving much less and experiencing fewer claims,” mentioned chief working officer Telisa Yancy in a press release.
The corporate mentioned they may make a fee of $50 per automobile coated by one in all their insurance policies. The common reduction verify shall be $100, mentioned American Household.
The coronavirus pandemic has left many People caught at dwelling and driving quite a bit much less. The sharp drop in driving has led to a plunge in gasoline costs over the previous month. As of Tuesday, the nationwide common gasoline value is $1.92, in keeping with AAA. One month in the past, the common was $2.40 per gallon.
Observe Brett Molina on Twitter: @brettmolina23.