GRAND RAPIDS CHARTER TOWNSHIP, Mich — Auto insurance companies Allstate and American Family Insurance announced they are returning a total of $800 million in premiums to customers amid the COVID-19 pandemic.
American Family Insurance will return $200 million to its customers and Allstate will return $600 million through it's "Shelter-in-Place Payback" program.
American Family Insurance said they will give customers a one-time payment of $50 per vehicle that is covered by an American Family personal auto policy, and expects to print and distribute 2.3 million checks within the next two months.
"American Family Insurance is doing this out of responsibility to our customers. They are driving less and experiencing fewer claims. Because of these results, they deserve premium relief," Telisa Yancy, the company's chief operating officer, said in a statement to ABC's national outlet.
Both companies referenced low activity on the roads as the reasoning behind their refunds.
""We’ve seen the data that there’s less people on the road. There’s less drivers, there’s less trips, so it makes sense to give that money back," Cass said.
Under Allstate's program, customers will receive 15% back from April and May. They will also have the ability to waive two, consecutive payments or choose how much to pay on those payments.
"We know that in times of crisis it’s important to act fast and put people first. That’s what Allstate’s doing," Meghan Cass, corporate relations for Allstate, said.
According to Cass the 15% payback will come automatically to the customers through either their bank account, credit card or Allstate account, depending on how each customer's preferences are set up. However, Cass recommends customers use their account on the Allstate mobile app.
In addition to paying back a portion of customers' premium, Allstate is also adding on automatic commercial delivery coverage to personal vehicles, to help individuals delivering medication, food or other necessities.
"Usually that’s not something that’s in there, but we know people are doing what they can to help and make ends meet, so we’re waiving that during the pandemic," Cass said.
Allstate is also offering free identity theft protection until the end of the year for any U.S. resident.
"We know that it’s more of a digital world. Everybody’s doing more work online. They're doing more shopping online, so it’s really important to have that protection," Cass explained.
The financial relief movements from both companies come as historic levels of unemployment rise due to the COVID-19 pandemic. In Michigan more than 400,000 new unemployment claims were made this week.
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