If you’ve been out on the roads lately, you’ve probably seen much less traffic than usual. This has led to two unusual announcements involving car insurance. KPEL reports.
The first is that the Louisiana Insurance Commissioner has invoked Rule 40. This rule makes it illegal for insurance companies to cancel policies or allow non-renewals. The reason for this is that many people have lost their jobs due to the isolation measures and may not be able to pay their premiums.
While Louisianians will need to pay their premiums at some point, your policy will be in place even if you can’t pay until the rule is lifted. Save what you can in the meantime!
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But as strange as that is, the next announcement is even stranger. Allstate has reported that driving has dropped 35-50% in the last thirty days. Because of this, there have been far fewer payouts from Allstate. You would think that they would keep all that money for themselves, but they plan on issuing hundreds of millions of dollars in refunds to their policyholders.
We shall see if other insurance companies follow Allstate’s lead, but the extra money will be welcome relief to anyone who can’t work and holds one of their policies.
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