Louisiana Insurance Commissioner Jim Donelon has approved an emergency rate reduction filing and customer rebate by Allstate Insurance and its subsidiary companies. The 15 percent rate reduction and rebate to policyholders is a part of Allstate’s corporate response to the COVID-19 pandemic.
Geico reportedly announced a similar move late Tuesday, saying it would give its auto and motorcycle policyholders a 15 percent credit on their bills as their policies come up for renewal.
“I am calling on other insurance companies to provide a similar return in premium to account for the very real fact that consumer compliance with the stay at home order in Louisiana has resulted in fewer cars on the road and an overall decline in driving means fewer accidents to insure,” Donelon said.
Consumer groups in March urged insurance commissioners to direct auto insurers to provide premium offset payments to policyholders whose miles driven has declined and will continue to remain lower than anticipated at the time of policy rating for the foreseeable future.