A major car insurer in the US is refunding millions of dollars to customers stuck at home during coronavirus lockdowns. Allstate, the country’s fourth biggest car insurer, said it would give back $600m (£490m) in total to customers. Another insurer, American Family Mutual, is also refunding customers, with cheques totalling $200m.

Both have seen a dramatic drop in accident claims as residents stay at home and off the roads. The refunds come at a good time with millions of households suffering financially from lockdowns across the country.

Allstate will be paying customers back in two ways. Drivers in quarantine will receive refunds, while most customers will be given a 15% discount on monthly premiums for April and May. The discounts will apply to 18 million customers. “This is fair because less driving means fewer accidents,” said Tom Wilson, chief executive at Allstate. Its data showed driving mileage was down between 35% and 40%.(BBC)…[+]