By Nancy Price
On April 6, auto insurance companies Allstate Corp. and American Family Insurance announced they were returning a portion of money to customers nationwide as COVID-19 has forced millions of Americans to work from home and cut back on driving.
Allstate is expected to give back a total of $600 million; personal auto customers will receive 15 percent of their monthly premium. “The goal is to have the payback credit issued to the customer prior to April 30,” said Scott Verbarg, agency owner of two Southside locations in Marion County. “If a customer pays monthly, the credit will be applied against the remaining balance due for the current policy term. If the customer paid in full at the beginning of the policy term, they will receive the credit in the same manner in which they paid – i.e. if they paid by credit card, the refund is credited back to the card.”
In addition, Allstate has offered all customers free identity protection for one year. “Also, a customer can elect to suspend the insurance payment, for any policy, for the months of April and May – without late fees, penalties or a lapse in coverage,” Verbarg said.
American Family Insurance plans to return a total of about $200 million to customers through a one-time payment of $50 per covered vehicle. “There are about two million customer customers to be issued, and the company’s aim is to get them all processed and mailed within 50 days,” said Michael Coop, president of American Family in Greenwood.
As well, “American Family has extended coverage for food delivery to our personal auto customers during the pandemic,” Coop added. “And for customers experiencing financial hardship because of the pandemic, arrangements have been made to extend the period of time to pay premiums.”
