OAKLAND, Calif (KTVU) - With fewer vehicles on the roads, some insurance companies have announced they will refund a portion of premiums to their customers.
“We’re paying out less in accidents and again we just think it’s the right thing to do,” said Glenn Shapiro, Allstate President of Personal Property Liability.
Shapiro told KTVU Wednesday that the company is refunding its 18 million customers nationwide 15% of their insurance premium for April and May, which amounts to more than $600 million.
Not to be outdone, GEICO Wednesday announced that it too will give auto and motorcycle policyholders a 15% credit when they renew their coverage, which was welcome news that hadn’t yet trickled down to all of the company’s customers.
“I didn’t hear anything about that. I’m surprised. I’ve got a payment due on the 10th of this month so I’ll see what going on with that,” said Bay Area resident Kenneth Cherry.
In an unprecedented time, insurance companies are making what are likely unprecedented business decision with more insurers following suit.
USAA insurance is giving its customers a 20% discount on premiums for two months.
Late Wednesday, Progressive announced it will credit policyholders 20% of their April and May premiums.
I mean everybody else is trying to help out in this time. It’s hard right now. I lot of people don’t have jobs right now. If you’re not diving that much why should you pay you be paying that much,” said Russel Page of Oakland.
In addition to refunding its customers, Allstate says its offering another service for even those who aren’t customers. Since so many people are using computers to work from home, the company announced that it's offering identity protection for free for the rest of the year.