Insurance company Allstate and American Family Insurance did discounts on insurance premiums on the car and return some of the money, as many drivers do not use their car greatly because of the quarantine is aimed at slowing the spread of the coronavirus. This writes Fox News.
Allstate said most customers can expect a 15% refund in April and may, while American Family Insurance returns $50 paid for one car.
“We are doing this right now, when our customers need the most money,” said chief Executive officer American Family Thesis Yancey.
For the last three weeks of March the clients of American Family traveled to 40% fewer miles, which led to a reduction in the number of calls to insurers.
Allstate estimated return program to $600 million, while the American Family has said it will return about $200 million to its customers.
The money will go either for a Bank account, credit card or on account to an insurance company, writes USA Today.
“This is true, because less driving means fewer accidents,” said Tom Wilson, Allstate Chairman, President and CEO.
The company said it will also offer relief of payment for the relevant customers and expand insurance coverage for drivers who use their vehicle for deliveries.
State Farm stated that it would take the decision on insurance payments to the end of the week. “We are closely monitoring trends in the field of automobile insurance and consider how best to return some of the money to our customers”, — said the representative of the company.
The company Progressive declared that it is exploring “how to best return to customers a portion of the insurance policy.”
Many insurers also have extended grace periods for late payments.
Pandemic coronavirus has led to the fact that many Americans are stuck at home and have less to go. A sharp drop in driving has led to a sharp drop in fuel prices over the past month. As of Sunday, 7 April, the average national price of gasoline is $1,92. A month ago the average price was$2,40 per gallon (3.8 l).