Allstate (ALL) said it will reimburse approximately 15% of the premiums paid by its customers in April and May, for a total of approximately $ 600 million. "Given an unprecedented drop in driving, customers will receive a Shelter-in-Place refund," said Tom Wilson, CEO of Allstate "This is fair because less driving means fewer accidents." Allstate payments will go to all customers Americans and Canadians with personal auto insurance, regardless of whether or not their state has a residence order at home. American Family, which only serves customers in 19 states, also said that its payments would go to all its customers, while American Insurance said it would return approximately $ 50 per car that a family had insured with the company for a one-time payment. . He said it will amount to around $ 200 million. Allstate and American Family have also stated that their customers who have financial problems due to a loss of income can delay payments on insurance premiums without penalty if they contact companies. Both are expanding insurance coverage for customers who use their personal vehicles to deliver food, medicine and other goods. Standard personal insurance policies typically exclude coverage used for a customer's car. Allstate says it also offers anyone in the United States, regardless of whether it's an Allstate customer, free identity protection for the rest of the year "since our lives have become more digital . "It's enough? But Allstate is probably returning only a fraction of the money that it will likely save from reduced claims for compensation during the crisis, said Dan Karr, CEO of ValChoice, a data analysis firm that acts as a watchdog in the insurance industry. Figures reported by Allstate to state insurance regulators show that it pays a little over $ 1 billion a month in auto insurance claims, he said. Karr's modeling suggests that those claims are likely to decrease by around 85% due to the reduced number of accidents. "I think it's fantastic what Allstate did. But where's the rest of the savings?" Karr told CNN Business. He said that the repayment of American Family Insurance will likely be even less than the average premium compared to Allstate's goal of a 15% reduction. It is too early to know exactly how far requests will decrease due to the drop in driving, Allstate spokesman Justin Herndon said. He said the company could provide additional payments to customers as it gets more complaints data. "We have decided to act quickly to put our customers first. This is something we will continue to look at," he said. The American family said they saw between 20% and 40% in claims on a weekly basis between the March 11 pandemic declaration and last Friday. Other consumer groups praised the insurers' moves: "Is that enough? Probably not," said J. Robert Hunter, director of insurance for the Federation of American Consumers. "(Ma) Allstate and American Family deserve praise for their industry leadership on this vital first step. While it is too early to say whether the promised amounts are sufficient to reflect the large drop in car accidents, the actions of American Family and Allstate they are the right thing to do to help policyholders besieged by Covid-19 restrictions and job losses. We urge other insurers to take similar action quickly. " Will others follow suit? Karr said he wouldn't be surprised to see other insurers following Allstate's lead. State Farm industry leader, which is a customer-owned mutual insurance company, "is closely monitoring our automotive insurance losses and is evaluating the best way to take them into account and return value to our policyholders," according to a company statement. . He said he expects a decision later this week. Progressive (PGR) said that "it is exploring the best way to return some premiums to customers to reflect the reduced exposure that occurs with less frequent driving during the pandemic and expect to implement these plans soon." Geico's spokesmen, owned by Berkshire Hathaway (BRKA), did not immediately respond to a request for comment on their plans. A 85% drop in the number of accidents is a conservative estimate, Karr said. He said the data confirm that it is the percentage of accidents that occur during periods of heavy traffic, which are almost completely absent in areas with residence orders at home. Auto insurance companies will likely continue to benefit from reduced driving even after their stay – house orders are revoked in some states, he said, noting that large numbers of people will continue to work from home both full-time and full-time. partial. Others will continue to remain jobless because their employer went out of business during the crisis. Workers who drive or travel by car to and from work make up for about 28% of vehicle-driven miles in normal time, according to the Federal Highway Administration. "The data show that accident rates increase exponentially with increasing traffic, and even 5% reduction in traffic will make a difference," he said. "Even people who still drive because they are essential workers, injury rates will be much lower." For those whose insurers do not offer reimbursement, Karr said that such customers should call their insurer and change the vehicle's coverage from use to work for personal use, assuming they are at home. This will also produce savings. But they should be sure to change it into commuting use once they are using the car to get to and from work once again.