By on April 6, 2020

With the coronavirus pandemic providing little in the way of silver linings (even rock-bottom gas prices aren’t much of a bonus if you’re living under lockdown orders), Allstate has provided one of its own.

Given the vastly reduced number of vehicles on the road and the anticipated cratering in insurance claims, the provider is giving customers a temporary break.

As reported by Reuters, Allstate plans to return more than $600 million in insurance premiums to policy holders.

In April and May, some 18 million policy holders will see Allstate, as well as offshoots Esurance and Encompass, return 15 percent (on average) of their monthly premium. The company calls it  “Shelter-in-Place Payback.” The move comes after an analysis showed a 35- to 50-percent drop in total miles traveled in most U.S. states, leaving the company with perhaps too healthy a balance sheet in the near term. A business-customer relationship never suffered from a little voluntary goodwill.

If only this writer’s insurance provider could take a hint.

As of Monday afternoon, eight states have not issued stay-at-home orders — most of them located in the Great Plains, an area that has thus far felt only minor impacts from the novel coronavirus. Larger population centers on the east and west coasts, and in the Great Lakes area, have long since locked down their citizens in an effort to slow the virus.

While Allstate is the largest car insurance provider to offer its customers a break, it’s not the only one. Also on Monday, American Family Insurance in Madison, Wisconsin announced policy holders will receive $50 back for each insured vehicle, Reuters reported.

[Image: Ford]

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29 Comments on “Cash Back for Not Driving – That’s Allstate’s Stand...”


  • avatar

    Gimme some money!

    I’ve been pretty happy with Allstate over the years. Customer since 2010, and they haven’t jacked my rates up over time.

    Their website leaves a bit to be desired, though.

  • avatar
    thegamper

    I had Allstate in the past, was not really a fan. Continuously finding ways to increase premiums and not pay claims. “What….you hit a deer? Put the carcass in your trunk and bring it home for our adjuster to examine so we can verify your claim”.

    I have had Citizens/Hannover for the past few years. Honestly, what a fantastic experience as I have had a few claims and feel like the only concern they ever have is making me whole. Would gladly pay 10-15% more to stay on with Hannover.

    • 0 avatar
      Rnaboz

      I have had Citizens for 10 years now. Took out a deer last summer, the MINI was out for a month, over 7 grand in repairs and rental, they never batted an eye. Awesome experience, except for the deer!

      • 0 avatar
        Kendahl

        I doubt the deer would agree.

        Years ago, automotive journalist Tom McCahill was asked what would happen if a full size car with six passengers hit a cow broadside at 60 mph. McCahill replied that it would total the car and kill all the passengers. Then, he added that it would be tough on the cow, too.

        I’ve been satisfied with State Farm. After a hail storm, their adjuster found and include damage I didn’t notice.

  • avatar
    Fred

    I get a discount because I’m retired and don’t put a lot of miles on the car. I don’t know the details but it saves me about $60 a year. I have State Farm.

    • 0 avatar
      brn

      State Farm refused to cover a claim that was right there in the policy. They said they could do it, because they had denied such claims in the past (just like their commercial), regardless of what the policy says. The State agreed, because they had precedence. F-em.

  • avatar
    cprescott

    I’m a Progessive client. Flo’s commercials were once interesting. Now they have some snowflake dude with an irritating voice. I don’t care about his musical talent – the radio spots are dreadful.

    Overall Progressive is competitive with rates and I’ve had no issues. I am frugal and look for lower costs and equal or better service but haven’t found any other place. I had Allstate years ago. I don’t remember the bad taste that they left in my mouth, but it was enough to make me switch.

  • avatar
    eggsalad

    My car is currently insured for “commuter use”. When my policy comes up in June, I’ll change it to “recreational use”. I haven’t commuted in 30 days, and I don’t anticipate commuting until September at the earliest.

  • avatar
    SCE to AUX

    Erie, 30 years – no complaints. I’ve found that switching would *not* save me 15% – or any other amount.

    However, my hybrid struck an airborne turkey at 75 mph on Sunday while my son was driving, damaging a lot of stuff in the radiator area. I didn’t know a radiator could look like a “U” and not leak. Wonder if they’ll ask if he was violating the state ‘stay at home’ order when this happened.

  • avatar
    FreedMike

    Well, considering that driving is one of the only things keeping me sane right now, and I can afford the coverage I have (State Farm), I wouldn’t really be interested. But thanks, guys!

  • avatar
    Steve Biro

    I’ve been with Allstate for more than 40 years. Auto, home, flood and even identity theft. I never filed a claim until this year, when my wife had an accident. She was fine but the odd contact angle resulted in something like $5800 in damage. My local Allstate office was great. But once the claim hit the corporate level, it all changed.

    Not only couldn’t the body shop (a preferred Allstate shop) get a response from the adjuster in order to proceed with work for two weeks, many of the parts used were used (suspension). This was not the body shop’s call. It was Allstate’s. It was in the policy’s fine print.

    It look about seven weeks go get my wife’s car back. And then Allstate weaseled out of paying for the car rental beyond 30 days. The body shop paid the rest. I’ll be switching at the end of this policy term.

  • avatar
    Nick_515

    Travelers. Couple of small claims over the years, “Cadillac-level service” per my insurance agent (she meant Lexus but she ain’t know it). They did do some jujitsu on me though and raised the price. Switched to a regional company Utica National. We’ll see.

    [Very smart of all state. are they the ones who’ve seen a thing or two? despise those ads].

  • avatar
    Art Vandelay

    Isn’t Ford already telling Allstate who is driving and where?

  • avatar
    NoID

    I’ve been a State Farm customer since I was still in high school, paying my share of the bill while I was still on my parents’ policy. They’ve never been the most inexpensive, but I’ve always gotten my money’s worth.

    As of this writing they’ve offered no blanket relief to customers, though my father in law told me they are granting him a month of relief. What I did do for one of my vehicles was reduce coverage to “storage”, which cuts the premium down to a shade over $5/month.

  • avatar
    bullnuke

    I was a happy Allstate customer from 1971 until 1997. My first policy was written for me (a single 20-year old sailor with a Porsche 912 in Idaho) and I had great rates even in Southern California with two kids driving. I moved to Ohio in 1992 and rates dropped due to the location and had 4 kids driving. During all this time there were no accidents, property damage incidents, nothing chargeable to Allstate. Then, out of the blue in 1997 Allstate tripled my rates and sent me to one of their “high risk” associated companies without explanation. No one had had a moving violation/ticket, not even overtime parking nor an accident/property damage incident. Allstate refused to explain why my policy was sent to the “high risk” associated company nor why my rates tripled for the next policy period. I was pretty happy with them for, what, 26 years? Done with them forever after this.

  • avatar
    Kendahl

    The purpose of a lockdown is to prevent disease transmission from sick people to healthy ones. I don’t see how this is compromised by driving around with your windows up. Even if you need to buy gas, outdoors at a gas station is a hostile environment for a virus. Just don’t walk up to somebody and cough in his face.

    Here in Arizona, golf courses are still open with the warning to keep a safe distance from the other players. My wife and I go to the supermarket every ten days to restock. People are careful to stay at least six feet from each other as much as possible. A few have been wearing masks and this will increase now that their use is encouraged. (If medical workers need N95 masks, I’m not sure how much good a bandana will do.) Every two or three days, we see our horse at a nearby stable. It’s outdoor boarding so it’s easy to avoid the other horse owners if they show up at the same time.

    • 0 avatar
      jack4x

      I believe the reasoning is that driving is statistically one of the most dangerous things we regularly do, and reducing the number of accident victims frees up more hospital beds for Covid patients.

      That said, I admit I’ve taken a few trips to nowhere as the weather has started to get nice.

  • avatar
    Arthur Dailey

    A number of American insurance companies have pulled out of Canada in recent years. State Farm perhaps the most recent selling off to Desjardins.

    • 0 avatar
      Tele Vision

      @ Arthur Dailey

      I’ve been with State Farm since I started driving in 1986. The sell-off to Desjardins was weird for me, as I got both a phone call and a letter ‘asking’ me to pay my yearly premium upfront. I was so incensed that I drove into town to berate my State Farm guy. He was very apologetic and managed to return me to monthly payments, after my threatening him to not only change companies but to make my entire family do the same. Collectively we have nine houses; three boats; RVs; trucks, cars, and hot rods; and travel insurance through the company – and only one claim that I know of: My Mom ran her 2005 A4 over a parking block in the snow. All the way over. Thanks, AWD.

  • avatar

    It is a good decision made by Allstate. In these difficult times when ordinary people and small businesses are forced to stay away from work they need support not only from Government but also from private companies and corporations and especially from big banks who were bailed out last time by taxpayers.

  • avatar
    MBella

    Since many people are posting about how great or bad insurance company X is, I’ll post my view. With many years in auto service, I can tell you which companies are the best and worst, at least as far as automotive.

    AutoOwners insurance is by far the best. They will get your vehicle back on the road quickly, with factory parts. Most supplements require just a quick phone call.

    AAA, USAA and Citizens are close behind. Usually only send out an adjuster once or twice. Most things get handled quickly, and again with factory parts.

    The middle is where most of the other insurance companies like Progressive, Allstate, Geico and the most of the smaller companies. They’ll put up some resistance, send out an adjuster for everything. Try to send used or aftermarket parts first. Usually they can be talked into ordering the factory part after what they sent clearly won’t work.

    Then there’s State Farm. They are not only on the bottom, but they are such a distant outlier it’s ridiculous. Aftermarket or used parts are pretty much the rule. Adjusters take forever to come out. They will also send one out for everything. Then send damaged junk parts about once a week until you have gone through the whole national used inventory. I once had a car down for over a month because of a wheel. They refused to order a new factory wheel, and instead got a refurbished wheel. Once it finally did come in it had a high gloss clear while the factory wheels had a satin finish. State Farm said that was within their standards. I also had a vehicle that needed a front subframe. We were waiting for two months with the weekly delivery of a junk part that was more damaged than the one I was replacing. I felt bad for the customer until I found out he was a State Farm agent. Then I laughed.

    Full disclosure, I have Progressive based on price. If my car is at the body shop, I know how to pay attention to them, to get a desirable outcome. That’s true really for any in that middle tier. If you want a better experience, those at the top offer it. My buddy somehow qualifies for a great rate from Auto owner’s that I don’t. Probably worth a few dollars. I wouldn’t get State Farm insurance for free.

    • 0 avatar
      DenverMike

      “Factory Parts” means used parts.

      All insurance companies are weasels, bordering on organized crime, and quietly make more money than Big Oil. Like where are all the other insurance companies? Why are they being so silent??

      But you’ll notice they’re not stating “New” Factory Parts. It’s just more shady business.

      I don’t have a problem with used parts (installed from a claim). And if they want to spend the extra time to perfect a damaged/rough part, that’s on them. Except no one wants “aftermarket”, especially not the body shop (if they do qualify work).

      But it makes no sense buying damaged/bad used parts, since it costs more to fix them than just getting Grade A used parts.

      • 0 avatar
        MBella

        It doesn’t. When I referenced factory parts, I meant new factory parts. Junk parts are usually just that. Also, AutoOwners, USAA, AAA, and Citizens don’t give you the run around and will use new factory parts.

  • avatar

    I have AAA CA and never had any problems with them. Handling accidents were painless with them so far. I could negotiate the payment for my totaled car getting couple of grands more than initial offer. Restored car (mine was hit from behind) also looked like new. Every year I shop for insurance and never was able to find quote less or equal to AAA.

    • 0 avatar
      MBella

      I don’t understand how insurance companies figure their rates. We could be next door neighbors with clean driving records and a similar age. One company will be way cheaper for one, while another will be way cheaper for me. If you can get one of AutoOwners, USAA ( usually fairly priced but you have to be a veteran or married to one) AAA or Citizens, for the best price, that’s really awesome. Win Win. I would probably be willing to pay a bit more for one of those. Not 3 times more that they usually quote me though.

  • avatar
    HotPotato

    Y’all need Metromile. Plug in the dongle, pay only for the miles you drive. The wife can work from home or bike-commute, so it saves us a ton of dough on her car.

    I’m an “essential worker” who can’t work from home, and like a good neighbor, State Farm is never going to return my crescent wrench–er, premiums–anyway. So I stick with old-school, none-of-your-damn-business-where-I-drive, I-prefer-to-overpay-in-advance insurance.

    • 0 avatar

      I quoted it too. It is not cheaper than AAA. With AAA you pay premium once a year. With Metromile – every month. Which mean every month you will have headache when they keep increasing rate and charge extra if for some reason dongle does not ping (e.g. acc is down) or car is at dealership.

  • avatar
    brn

    My insurance (Amica) is a Mutual, so you always get money back (lower premiums) when they save money.

    Allstate on the other hand told me several years ago that they didn’t want me as a customer. They wanted to charge me 3.5 times as much as Amica. I told them about the difference and they suggested I read between the lines. Lost me as a customer for life.

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