<p>Two car insurance companies are giving over $ 800 million in repayments to their customers as the coronavirus from China reduces travel.
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The first of these car insurance companies is Allstate (NYSE: ALL). The company says it will return $ 600 million to customers due to the reduction in travel from home orders. However, it is worth noting that this will apply to all customers, not just those in states with orders.
Here’s what Allstate has to say about the refunds.
“Most customers receive 15% of their monthly premiums in April and May, totaling more than $ 600 million. Customers get their money back via credit to their bank account, credit card or Allstate account. ”
The other car insurance company that offers premium rebates is American Family Insurance. This will cause the insurance company to send back about $ 50 per car to the policyholders. This will give the total repayment amount approximately $ 200 million.
The following is a statement from the American Family Association about refunds of the coronavirus premium.
“In response, we take the unparalleled measure to help our customers by providing a one-time payment of $ 50.00 for each passenger car insured with us through our premium payment. Why? Because with fewer cars on the road today, fewer miles are driven and that means that there will be fewer accidents. We want to return the savings to you. ”
So what about other car insurance companies? At present, none of them offer refunds of this kind to their customers. Although possible, this may change in the near future as they follow suit with Allstate and American Family Insurance, CNNBusiness reports.
At the time of writing, William White had no position in any of the above securities.