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
Car Insurers Are Giving Americans Their Money Back
An Iowa Department of Transportation digital sign displays a message over a highway in response to the spread of COVID-19, Thursday, March 26, 2020, in Des Moines, Iowa.   (AP Photo/Charlie Neibergall)

"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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