As Americans stay home to avoid spreading the coronavirus, fewer car crashes are happening — and that means big savings for auto insurers. At least two companies have decided to pass along that extra cash to you.
Josh Edelson/AFP via Getty Images, as Americans stay home to avoid spreading the coronavirus. Less driving means fewer car crashes. Fewer car crashes means big savings for auto insurers.Allstate is going to send out some. All 18 million drivers with Allstate auto policies will be receiving 15% of their premium, credited to their bank account, credit card or Allstate account.
"This is about fairness," Allstate CEO Tom Wilson said Monday, noting that driving mileage is down 35% to 50%, even in states that do not currently have shelter-in-place orders."This is about doing it and not waiting to be asked." Allstate is also offering free identity protection to all U.S. residents, saying the sudden rise of virtual meetings and classes — in fact, virtual versions of virtuallyAmerican Family Insurance, a smaller company, will be sending checks of $50 per car to more than 2 million customers. All told, American Family hasChief Operating Officer Telisa Yancy said American Family is acting"out of responsibility to our customers.
Some other insurers, while not yet offering across-the-board pandemic rebates, can adjust premiums on a case-by-case basis for drivers who are suddenly not driving.Allstate reports that while accidents are less frequent, the crashes that do occur seem to be more severe. The likely culprit? Speed: Drivers can go faster than usual on pandemic-emptied streets.
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