(Reuters) - U.S. insurer Allstate Corp (ALL.N) said on Monday that it would return more than $600 million in auto insurance premiums to customers as many Americans stay home and drive less due to “shelter-in-place” orders to curb the coronavirus outbreak.
Most customers will receive a “payback” of 15% of their monthly premium in April and May, the company said.
A smaller U.S. auto insurer, American Family Insurance in Madison, Wisconsin, also said on Monday that it would return a total of $200 million to auto insurance customers beginning in mid-April. Customers will receive $50 per vehicle covered by their policies, the company said.
“There are very few silver linings out there, but auto insurance companies are definitely one of them,” said Piper Sandler analyst Paul Newsome about coronavirus.