Allstate announced Monday that it will return $600 million in auto insurance premiums to customers because fewer people are on the road as a result of the new coronavirus.
The Northbrook-based insurer will offer a “shelter-in-place payback” to its Allstate, Esurance and Encompass customers. Most policyholders will receive 15% of their monthly premium in April and May.
“First, we are providing our customers a shelter-in-place payback since they are driving less,” Allstate CEO Tom Wilson said in a conference call Monday.
A majority of states now have some type of shelter-at-home order to quell the spread of COVID-19, the disease caused by the coronavirus. Most Americans are staying home as restaurants, schools, nail salons and other nonessential businesses are closed.
“We can see the drop in driving by day. In most states, driving mileage is down 35 to 50%. And this has happened even in states that don’t have shelter-in-place restrictions,” Wilson said.
Allstate customers will receive the rebate through a credit in their bank account, credit cards or on their Allstate account. The company is encouraging customers to use the Allstate Mobile app to receive the money.
With fewer drivers on the road because of coronavirus, Allstate will return $600 million in premiums to its customers
Allstate announced Monday that it will return $600 million in auto insurance premiums to customers because fewer people are on the road under states’ orders to stay home to reduce the spread of the coronavirus.