A couple of weeks ago I was so excited to be able to fill my car up for about $18! A few weeks later, my car is still completely full because I haven’t driven anywhere.
I’m sure most of you that are not essential workers are probably in the same boat. Staying at home as you should, but also paying for car insurance on a car that is now sitting in the driveway.
Allstate and American Family insurance has said that they are giving back about $800 million to auto insurance customers. People are not driving as often, which means less accidents.
Allstate has said that it will refund around 15% of the premiums that have been paid by their customers for April and May. That is about $600 million.
Given an unprecedented decline in driving, customers will receive a Shelter-in-Place Payback. This is fair because less driving means fewer accidents.Allstate CEO Tom Wilson
This applies to Allstate’s customers in the US as well as Canada. Any of their customers with personal auto insurance, even if their state doesn’t have a stay-at-home order.
American Family Insurance has also said its payments would go to all of its customers. They will be giving back about $50 per car each household has insured with them. It will be a one-time payment. They expect their paybacks to total about $200 million.
Both companies have also said that if their customers are having financial problems because of job loss and loss of income, they can delay payments without penalty. You will need to contact the companies to request this.
Allstate and American Family Insurance are also expanding the coverage of customers that use their personal vehicles to deliver medicine, food and other essentials.
Allstate even said that they are offering everyone in the United States (customer or not) free identity protection services for the rest of the year.
Other insurance companies may begin to do the same thing. So we need to pay attention to that.
For now, though, you can always call and change your coverage to save a little bit. You can change it from work use to personal use if you are staying home. Once you are back to work you will need to call and change it back.
Every little bit helps! So make sure you take advantage of the offers for reduced rates and refunds from different companies right now.