Donelon approves Allstate rate reduction, rebate
Louisiana Insurance Commissioner Jim Donelon approved an emergency rate reduction filing and customer rebate by Allstate Insurance and its subsidiary companies, Esurance and Encompass on Monday, April 6. The 15 percent rate reduction and rebate to policyholders is a part of Allstate’s corporate response to the COVID-19 pandemic in the United States.
In a media release on Monday, Allstate announced its intention to issue a premium rebate in the amount of 15 percent to policyholders for the months of March and April 2020. The rebates will be made payable to customers in April and May of 2020 in the form of direct credits to their bank accounts, credit cards or their Allstate account.
“These rebates will have an estimated $13,607,287 in direct economic impact to Allstate policyholders in Louisiana alone. Nationwide it will result in $600,000,000 returned to policyholders. 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,” said Donelon.
In the wake of the pandemic, many insurers, along with Allstate, have provided other resources to policyholders in the form of voluntary payment relief programs, identity theft protection services and even expanded coverage for those using their personal vehicle for the delivery of food, medicine or goods during this event. Commissioner Donelon thanked Allstate for this generous support for their policyholders during the ongoing crisis.