Marketplace has a new podcast for kids, "Million Bazillion!" EPISODE OUT NOW
COVID-19

Some auto insurers offer discounts as COVID-19 curtails driving

Jack Stewart Apr 7, 2020
HTML EMBED:
COPY
Driving is down 35% to 50% across the country, meaning fewer crashes, Allstate CEO Tom Wilson says. Bruce Bennett/Getty Images
COVID-19

Some auto insurers offer discounts as COVID-19 curtails driving

Jack Stewart Apr 7, 2020
Driving is down 35% to 50% across the country, meaning fewer crashes, Allstate CEO Tom Wilson says. Bruce Bennett/Getty Images
HTML EMBED:
COPY

People are driving less these days so some car insurance companies are offering discounts to customers.

Mike Altschwager lives in Milwaukee, Wisconsin, and like a lot of people he’s working from home now.

“Amusingly enough, I actually just purchased a new car about three weeks ago,” Altschwager said.

And now that new car is sitting idle in the driveway. But he’s still paying for insurance, and questioning that.

“Nobody knows what next week looks like financially,” Altschwager said.

His insurance company isn’t offering a discount, yet, but a couple of others are. American Family Insurance says its customers will be getting $50 per vehicle. Allstate says it’ll give a 15% credit for two months.

Driving is down 35% to 50% across the country, meaning fewer crashes, Allstate CEO Tom Wilson said.

“If you have fewer accidents, then our costs go down, and we think it’s fair to give our customers payback at this time when they need the money a lot,” Wilson said.

The insurance market is highly competitive, says Cathy Seifert at CFRA research.

“I think it’s a smart move from a customer retention standpoint, from a loyalty standpoint,” Seifert said. She says this could be a savvy investment in goodwill.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.