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Car Insurers Are Giving Americans Their Money Back

Driving is down by up to 50% in most states
By Rob Quinn,  Newser Staff
Posted Apr 7, 2020 7:15 PM CDT
Updated Apr 8, 2020 1:33 AM CDT

(Newser) – "Less driving means fewer accidents," says Allstate CEO Tom Wilson, whose company is giving refunds to millions of American drivers with nowhere to go. Allstate says it is giving $600 million back to customers after a steep drop in car accidents amid coronavirus prevention lockdowns, the BBC reports. The company, the fourth-largest American auto insurance firm, says customers in quarantine will get full refunds while other customers will get 15% of their monthly premium in April and May back. American Family Insurance says it is giving customers $50 back per covered vehicle, which adds up to around $200 million.

"Given an unprecedented decline in driving, customers will receive a shelter-in-place payback of more than $600 million over the next two months," Wilson said in a statement. The CEO said that with driving down by between 35% and 50% in most states, there was no internal debate at the firm over whether customers should get money back, Bloomberg reports. A Progressive Corp. spokesman says the company is also looking into refunds. (Read more coronavirus stories.)

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