Coronavirus pushes Allstate to return $600M in auto premiums
The payback will apply to 18 million policies
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U.S. insurer Allstate Corp said on Monday that it would return more than $600 million in auto insurance premiums to customers as many Americans stay home and drive less due to “shelter-in-place” orders to curb the coronavirus outbreak.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ALL | THE ALLSTATE CORP. | 169.11 | +6.19 | +3.80% |
Most customers will receive a “payback” of 15 percent of their monthly premium in April and May, the company said.
AUTO INSURER OFFERS RETURNS DURING CORONAVIRUS PANDEMIC
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The payback, which will apply to 18 million policies issued by Allstate and its Esurance and Encompass units, follows a data analysis by the insurer that showed mileage is down between 35% and 50% in most states, Allstate Chief Executive Officer Tom Wilson said during a call with reporters on Monday.
The analysis, based on data that Allstate collects from tracking products that some customers agree to use in exchange for discounts, and other sources, showed no difference between states that had “shelter in place” orders in effect and those that did not, Wilson said.
Still, some people may be driving faster on what are now less densely traveled roads, which could lead to more serious accidents, Wilson said.