With Americans driving less because of the pandemic — and getting involved in fewer wrecks — two leaders in car insurance said Monday they are refunding a portion of policyholders’ premiums. Other companies are expected to do likewise.
Allstate said policyholders will get 15% of their premium back for April and May. The company said the payments, totaling more than $600 million, will be routed through a customer’s bank account, credit card or Allstate account over the next two months.
American Family said it will return about $200 million to customers as a $50 payment for each vehicle insured with the company. It said most households insure two vehicles with American Family, so the typical payment will be $100 and will come as checks within 60 days.