auto

Auto insurance companies pay back $6.5 billion, but is it enough?

Auto insurance companies have pledged to refund or credit drivers more than $6.5 billion over the next two months due to the coronavirus pandemic but some insurers are treating policy holders more equitably than others, according to a report card issued this week by the Consumer Federation of America.

The CFA and Center for Economic Justice first called on insurers and state regulators to provide financial relief to policy holders nearly a month ago. With stay-at-home orders and other social distancing measures intended to limit the spread of the coronavirus, drivers are driving up to 50% less in some states,

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Allstate and other auto insurers giving money back to drivers

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

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