Insurer Allstate has launched a $600 million support package for its private motor policyholders in an effort to lessen the impact of the Covid-19 pandemic in the United States.
Under the scheme Allstate, Esurance and Encompass personal auto insurance customers will receive a Shelter-in-Place Payback. It will see most customers receive 15% of their monthly premium in April and May, totalling more than $600 million. Customers will receive the money back through a credit to their bank account, credit card or Allstate account.
Policyholders are also being offered free identity protection coverage as the current pandemic demand more virtual communication between insurers and clients.
Allstate said: “Shelter-in-place orders require us to work, take classes and visit friends virtually, which increases our exposure to cybercrime. To help people, Allstate is making the Allstate Identity Protection product free for the rest of the year with no opt-out-requirement. Allstate Identity Protection helps protect people from identity theft and financial fraud and provides more control over information shared digitally. US residents can get the free identity protection product through Dec. 31, 2020, regardless of whether they are already Allstate customers, by signing up in April or May. “
The firm is also expanding insurance coverage for customers who use their personal vehicles to deliver food, medicine and other goods for commercial purposes. Standard personal auto insurance policies typically exclude this coverage.
However, many people have started delivering goods to help others, earn money and to support businesses and social service organizations that have expanded their delivery services. Allstate said it is seeking to ensure its customers have protection in the coming months.
“Allstate has been helping customers overcome catastrophes for 89 years since our purpose is to make sure they are in Good Hands. We have learned to move quickly and put people first,” said Tom Wilson, Chair, President and Chief Executive Officer. “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. We are also providing free identity protection for the rest of the year to all US residents who sign up, since our lives have become more digital.”