Several companies that sell auto insurance in Alabama have decided to return a portion of their customer’s premiums in light of changing consumer behavior during the coronavirus pandemic.
Governor Kay Ivey announced Friday morning that over $100 million has been returned to Alabamians so far, and she encouraged the remaining insurance companies to follow suit.
“This is good news for Alabama insurance consumers,” Governor Ivey said, before adding, “I want to thank automobile insurance companies for stepping up to the plate during this difficult time and supporting their policyholders.”
In terms of total dollars returned to customers, State Farm and Geico are leading the way with about $35 million and $30 million given back respectively.
The most common policy adopted among the participating companies to this point is to return 15% of two months of premiums, though a number of firms vary in the specifics.
“Given an unprecedented decline in driving, customers will receive a Shelter-in-Place Payback,” Allstate CEO Tom Wilson told CNN.
“This is fair because less driving means fewer accidents,” he continued.
Alabama Insurance Commissioner Jim Ridling released a statement Friday saying, “Many Alabamians are not driving as much right now because of Governor Ivey’s stay-at-home order and emergency declarations. Many consumers are working from home.
“It only makes sense to discount what consumers are paying for automobile insurance and to provide them some financial relief. I join Governor Ivey today in offering our sincerest thanks,” Ridling concluded.
A full list of the participating companies who do business in Alabama and the amounts they are returning can be found here.
Henry Thornton is a staff writer for Yellowhammer News. You can contact him by email: [email protected] or on Twitter @HenryThornton95
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