American Family Pays Back Auto Policy Holders For Not Driving During Coronavirus Pandemic

American Family Insurance is giving its customers about $200 million back on their auto premiums because of the reduction in driving due to the coronavirus.

“American Family Insurance is doing this out of responsibility to our customers. They are driving less and experiencing fewer claims. Because of these results, they deserve premium relief,” Telisa Yancy, American Family chief operating officer, said in a statement.

Auto customers will receive a one-time payment of $50 per vehicle within about the next 60 days. The company expects to deliver 2.3 million checks, with customers in Wisconsin, where American Family is based, receiving checks beginning this week. Customers in the 18 other states that American Family covers will receive their checks following this date.

American Family said the payback program applies to all auto insurance policies applied for as of March 11, when COVID-19 was declared a pandemic by the World Health Organization. Polices written after that date have been excluded from the payback checks, the company said.

Beyond the payback program, American Family is also offering flexibility to customers impacted by the coronavirus with payment deferrals, payment plans, removal of late fees, and the suspension of underwriting and non-renewal cancellations.

“We want to do our part to help during this trying time and be an industry leader in how we are giving back to our customers and communities,” Yancy added.

Allstate has also offered a payback program for its auto policy holders amounting to $600 million or 15% back on a premium for the months of April and May.