Why isn’t car insurance cheaper as we all stay home?
It’s a fair point. Why should anyone have to pay the same amount to insure something when their risk is greatly reduced?
I reached out to every major vehicle insurer. Some have recognized the changed circumstances, others have not.
On Monday, Allstate said it will give its customers a 15% break on their monthly premiums for April and May.
The company said it will return more than $600 million to policyholders through credits to their bank accounts, credit cards or Allstate accounts.
“This is fair because less driving means fewer accidents,” said Allstate’s chief executive, Tom Wilson.
He also said the company will offer free identity-theft protection through the end of the year to any U.S. resident as people increasingly live their lives online. You don’t have to be an Allstate customer to qualify.
American Family Insurance, a smaller Midwestern firm, announced a similar program Monday, pledging to return about $200 million to customers.
Other vehicle insurers still seem to be wrestling with doing right by policyholders versus doing right by shareholders.
(long read)
https://www.latimes.com/business/story/2020-04-07/coronavirus-car-insurance?