Auto insurer Allstate Corp. on Monday said it would refund more than $600 million in insurance premiums, or up to 15% of what its customers pay in April and May. The company is covering fewer accidents as Americans stay home, and says it has tracked a 35% to 50% drop in driving mileage since states started issuing shelter-in-place and stay-at-home orders last month.
“You can just see it by state—boom, it dropped in mid-March,” Allstate CEO Tom Wilson told reporters on a conference call Monday morning. “It’s basically down everywhere across the country.”
He cited data from Allstate’s mobility-analytics subsidiary, Arity, which tracks 23 million vehicles. Not all of those are Allstate-insured cars or trucks; the company said its refunds would apply to 18 million customer policies.
“We’ve assumed that this will continue for a while,” Wilson said.
Chief operating officer Telisa Yancy also cited a drop-off in the miles its customers are racking up—and the resulting accidents they’re getting into: Customers “are driving less and experiencing fewer claims,” she said in a press release. “Because of these results, they deserve premium relief.”
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