Coronavirus prompts Allstate to provide $600 million in ‘shelter-in-place’ paybacks to customers affected by COVID-19 pandemic

The insurance company Allstate is expected to provide hundreds of millions of dollars worth of “shelter-in-place” paybacks to customers affected by the coronavirus pandemic.

Most people who get their personal car insurance through Allstate, Encompass or Esurance should receive 15% of their monthly premium back in April and May, totaling more than $600 million, according to a statement from the company.

“This crisis is pervasive. Given an unprecedented decline in driving, customers will receive a Shelter-in-Place Payback of more than $600 million over the next two months. This is fair because less driving means fewer accidents,” company CEO Tom Wilson said in a statement Monday.

Allstate is providing free identity protection as well for the remainder of 2020 to all U.S residents who sign up, regardless of whether they are already customers, according to Wilson.

Those insured through the company who are experiencing financial challenges are expected to also be given the opportunity to enroll in a plan to delay two consecutive premium payments without penalty, Wilson said.

The insurance business’s announcement comes as the outbreak of the viral respiratory infection continues to negatively impact the U.S. and the world economy.

A record number of Americans have filed for unemployment as the threat of the virus has closed businesses and caused many companies to layoff and furlough employees. Unemployment claims in the U.S. rose to 6.6 million two weeks ago, the Department of Labor reported.

At the state level, Massachusetts has processed nearly 330,000 unemployment claims since since March 14.

GEICO, another major insurance company, announced in late March it would halt all policy cancellations due to insurance expirations and lack of payments during the coronavirus public health crisis.

Liberty Mutual has similarly started extending payment dates and waiving fees for customers negatively impacted by the pandemic, and Progressive announced it would not cancel any active policies due to non-payment through May 15.

Customers at Allstate will receive the shelter-in-place money back through credit to their bank account, credit card or company account, Wilson said.

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