Since more people are social distancing and quarantining, fewer people are driving.
CNN reports that two auto insurance companies will be giving back money to their customers. The two companies combined will return roughly $800 million because people are driving less due to the COVID-19 pandemic.
Allstate and American Family Insurance are the two auto insurers that will be returning premiums to customers. According to CNN, Allstate will return approximately 15% of premiums paid by customers in April and May. This will be a total of nearly $600 million. These payments will go to all U.S. and Canadian customers with personal auto insurance. Even if you are driving less or not, you will be getting money back.
American Family only has customers in 19 states. But according to CNN, the payments will go to all of their customers. Both Allstate and American Family have announced that any of their customers going through financial problems due to a loss of income are able to delay payments on insurance premiums without penalty. To do so, you must contact the company. Allstate and American Family are also expanding coverage for customers who use their vehicles to deliver food, medicine, groceries, and other goods.