Several auto insurance companies have offered to issue a partial refund for Americans from their monthly insurance payment amidst the CCP Virus pandemic, according to multiple reports.
Companies Allstate and American Family stated that they plan to refund part of the customer’s monthly fees because of the CCP (Chinese Communist Party) virus pandemic, which has resulted in fewer cars on the road.
American Family Insurance issued a statement on the matter, saying that as a part of the Auto Insurance Premium Relief Payment program, they will be issuing a “one-time $50.00 payment for each personal automobile” that is insured with the company.
“With fewer cars on the road these days, there are less miles being driven and that means there will be fewer accidents. We want to return the savings to you,” the company stated.
The company also assured its customers that the payout will not affect their rates, saying that customers who receive the Premium Relief Payment will not be charged back any of the money given during this time.
“Because so many people are experiencing financial hardship now, we are working to get these payments issued as quickly as possible. We have received regulatory approval in Wisconsin and will begin mailing checks the week of April 6, 2020. Checks will be sent to customers in our other operating states pending regulatory approval,” the company stated.
Ken Muth, a spokesperson for American Family Insurance, said that the estimated savings the company is returning to its customers is “based on our best determination of what we know” at the moment, according to the Hill.
“We’ll continue to focus on aligning what we charge in premium to the expected costs associated with providing the insurance coverage, which is primarily paying out claims,” Muth said.
The company Allstate have also issued s statement, saying it will be provide refunds to auto insurance customers through its Shelter-in-Place Payback program.
Customers of Allstate, Esurance, and Encompass personal auto insurance will receive 15 percent of the premium monthly payment back throughout the month of April and May, according to the statement. In total, the company will be paying back over $600 million to its customers.
“This crisis is pervasive. Given an unprecedented decline in driving, customers will receive a Shelter-in-Place Payback of more than $600 million over the next two months. This is fair because less driving means fewer accidents.
“We are also providing free identity protection for the rest of the year to all U.S residents who sign up, since our lives have become more digital,” said Tom Wilson, the CEO of Allstate.
