Allstate plans to return $600 million to auto insurance policyholders over the next two months due to the coronavirus pandemic.
"This crisis is pervasive," Tom Wilson, President and CEO of Allstate, said in a statement on Monday. "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."
Driving has declined 35% to 50% in most states, Wilson told Bloomberg. The payback means most customers will receive 15% of their monthly premium in April and May. The payback will be in the form of a credit, and Allstate says the quickest way to receive it is through the Allstate Mobile app. Customers having trouble making payments can also reach out to Allstate to "delay payments without penalty," according to the release.
Allstate is not alone. American Family Insurance plans to return about $200 million to policyholders through a $50 per vehicle payment, according to Bloomberg.
Elsewhere in the auto industry, automakers are providing financial relief in the form of unprecedented incentives for new car purchases, including deferred loan payments and 0% financing for up to seven years.