Current Events in April 2020

As goes the COVID-19 pandemic, so goes the U.S.’ largest airlines. 

American, Delta, Southwest, and United have all made system-wide updates to help travelers who would like to opt out of their existing reservations and those who have to fly but want to be assured of their safety.

Delta Air Lines

To help both customers and employees maintain safe social distancing both on the ground and in the air, Delta is taking the following steps starting April 13 and extending through May 31.

Blocking middle seats

Middle seats in Main Cabin, Delta Comfort+, and Delta Premium Select will now be blocked on all flights. 

If a flier wants to be seated directly next to a travel companion or family member, Delta asks that they contact Reservations or speak to a Delta agent at the airport.

If a passenger is unhappy with their seat once the plane is in the air (and above 10,000 feet),  a member of the flight crew will help them find a new seat using weight-and-balance restrictions as a guide.

Flight capacity

The company is reducing the number of customers on each flight, but it did not quantify what that reduction would be.

Upgrades

The airline is pressing pause on all automatic and in-advance Medallion Complimentary Upgrades. Instead, upgrades will be processed at the gate in priority order and using social distancing as a guideline to determine where upgraded travelers can be placed. 

Boarding process

Boarding will now be done in groups of 10 and with extra distance between each person in each boarding group.

Rebooking

Delta is extending the ability to plan, re-book, and travel for up to two years. 

Delta offered the following explanation regarding the changes:

“Tickets normally expire one year after purchase, but we’re providing waived change fees and greater flexibility to travel through May 31, 2022, for customers who: have upcoming travel already booked in April or May 2020 as of April 3, 2020; or have existing eCredits or canceled travel from flights in March, April or May 2020. Meanwhile, new tickets purchased between March 1 and May 31, 2020, can be changed without a change fee for up to a year from the date of purchase.”

Compliance with the Department of Transportation’s (DOT) recent Enforcement Notice regarding refunds

ConsumerAffairs asked Delta if it was going to comply with the DOT’s new policy, but as of press time, ConsumerAffairs had not received an answer from Delta’s media department.

Southwest Airlines

Schedule reduction

Southwest’s latest update shows changes in its flight schedule for travel between June 6 and June 27. That includes a 50 percent reduction, which accounts for approximately 2,000 flights per day. The suspension of its international service will continue, but the airline had not published any city-specific or market-specific information as of press time. 

Rebooking

Southwest says that if a traveler decides not to travel and has canceled their flight at least 10 minutes prior to its scheduled departure, the amount paid for that ticket can be applied toward a nonrefundable ticket (Wanna Get Away® fares), which is normally valid for one year from the date of purchase. Southwest explained that customers’ funds that have expired or will expire between March 1 - June 30, 2020, will now expire June 30, 2021. Any travel funds created because you cancel a flight between March 1 - June 30, 2020, will expire June 30, 2021.

Compliance with the DOT’s recent Enforcement Notice regarding refunds

Brian Parrish of the Southwest Communications Team told ConsumerAffairs that Southwest fully complies with the directive from the DOT. In an instance where a flight is cancelled, the airline offers these options to affected customers:

If a traveler would like to rebook, they may change their travel up to 60 days from the original flight date by visiting Southwest.com/rebook. Flights that have seats available will display as “Available.” Parrish said that online is a traveler’s best option as call volumes are likely to be very high to reach a Southwest Representative. On the other hand, if a traveler is unsure of their future travel plans, they do not need to take any action. 

“Rest assured, the funds used to pay for this trip will be available for the Customer named on the ticket to use through June 30, 2021 (an extension from our previous time limit of one year from date of purchase),” Parrish said. “Customers simply use their original confirmation number as the way to access these funds in the future—similar to ‘store credit’ at most retail establishments.”

And if one of those doesn’t make the consumer happy?

“If these options do not meet a Customer’s needs, they may request a full refund to the original form of payment,” Southwest stated.

American Airlines

Rebooking

According to the airline’s latest update, it has extended its offer to waive change fees for customers who have summer travel through September 30, 2020. That offer is available for any of American’s fares, and customers will have until December 31, 2021, to make future travel plans. As far as fare changes, American says that “rules may apply depending on the ticket.”

American says that any ticket purchased on or before April 7, 2020, for travel through September 30, 2020, will not incur change fees prior to travel. Customers must pay any fare difference, if applicable, at time of ticketing of the new fare. All AAdvantage award tickets are included in this offer. Customers are allowed to change their origin and destination cities as part of this new offer. Travel must be completed by Dec. 31, 2021.

New travel purchases

American is also extending its offer to waive change fees for customers who purchase new travel through May 31, 2020. Any ticket purchased by May 31, 2020, will not incur change fees prior to travel, nor will any ticket purchased from March 1 at 4:30 p.m. CT through May 31, 2020, at 11:59 p.m. CT. This is available for any of American’s nonrefundable published fares.

Compliance with the DOT’s recent Enforcement Notice regarding refunds

A spokesperson for American said that “all tickets purchased prior to April 8: if American makes a schedule change that results in an arrival/departure delay of 61 minutes or more, the customer qualifies for a full refund.”

United Airlines

Rebooking

According to United’s latest update, customers with reservations now have until April 30, 2020 to make changes to, or cancel, any travel they have booked through the end of the year without fees. This is on top of the existing waivers that allow fliers to change or cancel plans for travel through May 31, 2020. 

If a customer opts to cancel their flight, they can retain the value of that ticket to be applied to a new ticket without a fee. Those “electronic travel certificates” will be valid for 24 months from the date they were issued and includes all currently valid electronic certificates and all new ones issued on or after April 1, 2020. 

“You might not see this policy change reflected everywhere right away – we appreciate your patience as we work to make that happen,” the airline notes. 

Compliance with the DOT's recent Enforcement Notice regarding refunds

As of press time, ConsumerAffairs had not received an answer from United’s media department.

Under a new contract with the U.S. government, General Motors will make and deliver 30,000 ventilators to the Strategic National Stockpile by the end of August. Roughly 6,000 ventilators will go out by June 1.

The contract with the Department of Health and Human Services is worth $489.4 million, and it was made possible through the Defense Production Act. 

In a statement on Wednesday, HHS Secretary Alex Azar said the deal is part of the Trump administration’s “all-of-America” strategy for fighting the pandemic and helping those who are sick.

“Invoking the Defense Production Act to secure ventilator production from GM and other companies is a part of President Trump’s all-of-America approach to combating the coronavirus,” Azar said. “By rating contracts under the DPA, HHS is helping manufacturers like GM get the supplies they need to produce ventilators as quickly as possible, while also ensuring that these ventilators are routed through the Strategic National Stockpile to where they’re needed most.” 

Company spokesman Jim Cain said GM intends to “fulfill the government contract and (has) the capacity to supply more if needed.” To make the ventilators, GM will work with ventilator company Ventec Life Systems.

“GM and Ventec Life Systems are working with speed and urgency to arm front-line medical professionals with the critical care ventilators they need to treat seriously ill patients,” the automaker said in a statement. 

Other automakers producing ventilators 

Ford announced last week that it will be making 50,000 ventilators over the next 100 days at a facility in Michigan. 

“The Ford and GE Healthcare teams, working creatively and tirelessly, have found a way to produce this vitally needed ventilator quickly and in meaningful numbers,” Jim Hackett, Ford’s president and CEO said in a statement. “By producing this ventilator in Michigan, in strong partnership with the UAW, we can help health care workers save lives, and that’s our No. 1 priority.”

Toyota has said it’s “finalizing agreements to begin working with at least two companies that produce ventilators and respirators to help increase their capacity.”

"We are eager to contribute our expertise and know-how in order to help quickly bring to market the medical supplies and equipment needed to combat the COVID crisis," said Ted Ogawa, incoming CEO, Toyota North America. "Our message to the medical equipment community is we are here to help, please utilize our expertise."

Coronavirus (COVID-19) tally as compiled by Johns Hopkins University. (Previous numbers in parentheses.)

Total U.S. confirmed cases: 401,166 (378,289)

Total U.S. deaths: 1,2936 (11,830)

Total global cases: 1,450,343  (1,381,014)

Total global deaths: 83,568 (78,269)

Doubling down on social distancing

New York City Mayor Bill de Blasio says New Yorkers need to “double down” on social distancing to prevent cases of the coronavirus (COVID-19) from occurring at a faster rate.

The mayor did have some good news at today’s briefing. He said coronavirus hospitalizations are leveling off. But keeping up the social distance protocol, he said, is necessary to keep that trend on track.

“We know we’re not out of the woods -- it’s too early,” de Blasio said. He stuck to previous forecasts that predicted half the city’s population could get the virus.

Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases (NIAD), has a similar message. He told Fox News that new cases nationwide appear to be reaching a peak, but he also said it’s not time to let up on mitigation measures that have proved effective.

More money for small business

The Small Business Administration (SBA) loan/grant program was so popular out of the gate this week that many participating banks were overwhelmed. In Congress, House Speaker Nancy Pelosi (D-Calif) and Senate Minority Leader Chuck Schumer (D-N.Y.) are proposing giving small businesses access to more money.

The original loan amount, under the CARES Act, is $350 billion, but the two Democrats say more is needed. Congressional Democrats are proposing an “interim” relief bill with another $500 billion to make loans to small businesses and provide direct aid to hospitals, state governments, and food assistance programs.

Tips for avoiding the increasing number of scams

The National Insurance Crime Bureau (NICB) is partnering with the Cybercrime Support Network to educate online users about scams surrounding COVID-19. The organizations are seeking to inform consumers about what they need to watch out for when surfing the web, working online, or e-learning from home. 

"It all starts with educating yourself about the scams that are happening surrounding the virus, and if it sounds too good to be true it probably is," said NICB Chief Operating Officer Jim Schweitzer. "As the lockdown continues, the fraudsters will utilize the phone and the internet to try to alleviate your fear and anxiety by promising anything that will cause you to trust them with your sensitive information."  

Hackers are also being drawn to people working from home because security on home WiFi systems usually isn’t as robust as on corporate networks at now-deserted offices.

Restaurants becoming grocery stores

Restaurants are reinventing themselves to face the coronavirus. No longer seating customers inside, chains like Subway and Panera have begun meeting consumers’ other needs by stocking and selling popular grocery items like bread, milk, and fresh fruit.

Subway is selling the ingredients that normally go into its sandwiches so consumers can make their own sandwiches at home.

Refunds from insurance companies

Millions of Americans are leaving their cars parked as they abide by stay-at-home orders. As a result, highways have fewer cars on them and a lot fewer accidents. In one 24-hour period, both AllState and Geico announced that they are cutting premiums for their customers.

Both insurance companies are cutting rates by 15 percent -- AllState for two months and Geico for six months. Geico says the savings will average about $150 per auto policy and $30 off motorcycle policies.

Other insurance companies are expected to follow the example.

Jack Dorsey donates $1 billion 

The individual and corporate response to the pandemic continues to show stark differences from the response to the 2008 financial crisis, when consumers received little to no help. Jack Dorsey, CEO of both Twitter and Square, has announced that he will donate $1 billion of his Square stock to charities working to help people dealing with the coronavirus.

“I’m moving $1B of my Square equity (~28% of my wealth) to #startsmall LLC to fund global COVID-19 relief,” Dorsey wrote in a tweet. “After we disarm this pandemic, the focus will shift to girl’s health and education, and UBI.” 

Dorsey said the funds will be taken from his stake in Square stock. The initial grant will send $100,000 to America’s Food Fund.

Around the nation

• Tennessee: State Health Commissioner Lisa Piercey reports that the state has received its first shipment of new coronavirus test machines that can render results in as few as five minutes. The first machines went into the government's public health laboratory in East Nashville. Walgreens is expected to also deploy these machines at testing locations in the state.

• Oregon: Gov. Kate Brown has extended her ban on eating at restaurants and bars in the state until further notice. The ban went into effect last month and was originally expected to last for at least four weeks. Under the new order, the ban will last “until lifted by the governor.” 

• Virginia: A widely followed coronavirus model predicts that cases will peak in Virginia much earlier than previously forecast. The model now shows April 22 will be Virginia’s deadliest day. Previously, the virus was projected to peak in late May or early June.

Dick's Sporting Goods announced on Wednesday that it will be furloughing a "significant number" of employees spread across its retail stores, distribution centers, and corporate headquarters beginning April 12. The decision was made due to the impact of COVID-19.

In a filing with the Securities and Exchange Commission (SEC), it is also temporarily reducing the salaries of its executives, senior leadership, and its Board of Directors was suspending the payment of its cash retainer. 

One positive note for those furloughed “teammates” is that, throughout the furlough, Dick’s will continue to provide benefits to those employees who are enrolled in benefit programs.

“For now, until our stores are fully reopened, small teams within our stores, distribution centers, and corporate offices will continue to work, following social distancing practices,” the company said in a statement. 

“It is our goal that when this crisis subsides, we will welcome back our teammates, open our doors and get back to the business we love of serving athletes and our communities.

Auto insurance companies are saving billions of dollars during the coronavirus (COVID-19) pandemic, and some of that money is being returned to customers.

Hours after Allstate announced that it would return $600 million to consumers, Geico upped the ante by telling policyholders that it will be sending $2.5 billion their way.

With stay-at-home orders keeping millions of Americans off the highways there has been a sharp drop in the number of auto accidents. Fewer accidents translate into fewer claims and fewer claims mean insurance companies are suddenly more profitable. 

In a letter to policyholders, Geico CEO Todd Combs announced what he called the GEICO Giveback. The company will provide a 15 percent credit to all auto and motorcycle policies coming up for renewal between now and October 7.

“This credit will also apply to any new policies purchased during this period as part of our commitment to protecting the wellbeing of our customers,” Combs wrote. “Current customers can expect to see this credit when they renew. Customers do not need to take any action to receive this credit.

Also applies to new policies

Geico said it expects the credit to average $150 for each auto policy and $30 for the typical motorcycle policy. The company projects that the total of the discounts given to policyholders will be around $2.5 billion.

At the end of March, Geico announced a pause in policy cancellations for non-payment through the end of April. Its discount offer comes as rival Allstate announced Tuesday that it was sending $600 million in premiums back to customers.

That program is called Shelter-in-Place Payback, and it includes Allstate, Esurance, and Encompass personal auto insurance customers. Allstate says most customers will get a 15 percent rebate on their premium for the months of April and May.

The fastest way for customers to receive this payback is to utilize the Allstate Mobile app.  Allstate said it’s working with state insurance regulators to move forward as quickly as possible.

Reduced risk

Auto insurance rates are based on a number of factors, but it usually comes down to risk; that’s why drivers with good records usually get better rates. One factor determining risk is the number of miles driven in a given year.

With stay-at-home orders in place in wide areas of the U.S., insured motorists could see their annual miles driven fall by well over 1,000 miles, lowering their risk to the insurance underwriter.

Because of that fact -- and with Allstate and Geico announcing their policies -- pressure is likely to build on other insurance companies to make similar accommodations with their customers.

We’ve seen the footage of supermarket shelves picked clean of toilet paper, bleach, and cleaning supplies over the last month as panicky consumers stocked up.

The job of restocking those shelves has fallen to an army of grocery workers who report in each day, despite their fears of being exposed to the coronavirus (COVID-19). Backing them up is an army of truck drivers transporting food and other essential items.

Both armies are beginning to show signs of strain in the battle against the coronavirus, with America’s food supply chain in the balance.

The Owner-Operator Independent Drivers Association, the trade group representing independent truck drivers, has gone public with an appeal for help. In a letter to the White House, Todd Spencer, the group’s CEO, said his members are exposed to COVID-19 every day because of their jobs.

“They don’t have access to PPE or any practical means to know when they may be falling ill or any practical solution if they need treatment or self-isolation,” Spencer wrote. “Access to testing must be available where they are, particularly on busy truck routes. And testing must show results in hours, not days.”

The group also wants a way to respond to truck drivers when they test positive for the virus. Spencer suggested infected drivers could be treated and quarantined at motels along their routes.

“Right now professional drivers are busting their butts to care for the nation,” Spencer wrote. “Their hard work and personal sacrifice should not include their health or even their lives if at all possible or preventable.”

Threat to the supply chain

Without help, Spencer warned that many drivers might park their trucks when word spreads that more of them are testing positive. That, he warns, could threaten the nation’s vital food supply chain.

On the same day the letter was sent, the Federal Highway Administration issued a notice to states that they have wide leeway in enforcing federal prohibitions against commercial activity at highway rest areas. It suggested that allowing food trucks to set up in rest areas could be a helpful step in assisting commercial truck drivers.

“If a state determines that permitting food trucks to operate and sell food in any designated federally funded Interstate Highway rest areas is necessary to support interstate commercial truck drivers, FHWA will refrain from taking any remedial action under the Federal-aid highway program against that state,” the notice declared.

Some White House officials are predicting that the number of lives claimed by the coronavirus could be lower than initially predicted due to the high number of Americans practicing social distancing.

A week ago, administration officials said the number of people who would die from the coronavirus in the U.S. was between 100,000 and 240,000. However, a source close to the Trump administration’s coronavirus task force says it’s possible that the death toll will be “way under” that figure. 

The initial estimate was rooted primarily in the assumption that only 50 percent of Americans would heed the social distancing guidelines set forth by the government. Now, it’s become evident that a much larger percentage of Americans are staying home. 

Social distancing adherence high 

U.S. Surgeon General Jerome Adams said in interviews this week that a majority of Americans -- 90 percent -- are staying home in an effort to slow the spread of the virus. 

"Those models that were done, they assumed that only about 50 percent of the American public would pay attention to the recommendations,” Dr. Robert Redfield, director of the US Centers for Disease Control and Prevention, said in an interview with Tucson radio station KVOI on Monday.

“In fact, it would seem, a large majority of the American public are taking the social distancing recommendations to heart -- and I think that's the direct consequence of why you're seeing the numbers are going to be much, much, much, much lower than would've been predicted by the models.”

Not the time to stop

Towards the end of March, Dr. Deborah Birx -- leader of the coronavirus task force -- said that the death toll could go “down to 100,000 to 200,000 deaths, which is still way too much,” if consumers practiced social distancing, hand washing, and other measures. 

However, public health experts warn that “nobody has a crystal ball with the ability to pinpoint the precise number of people who will die in a pandemic.”

“This is no time to relax social distancing measures,” officials added.

Amazon has announced that it may fire employees who “intentionally violate” its social distancing guidelines. 

Workers have complained that the requirements of their job make it difficult to comply with the policy, but the company now says workers who violate the policy of maintaining a distance of six feet apart will receive two warnings before being fired. 

"We've had some instances of employees intentionally violating our clear guidelines on social distancing at our sites, which endangers both the individual and their colleagues," said Amazon spokesperson Rachael Lighty in a statement to CNN. "On the second documented offense, termination may occur." 

Social distancing in effect

Amazon’s facilities have already been heavily impacted by the coronavirus, and the company says it’s doing everything it can to protect the safety of both workers and the public. Last week, U.S. lawmakers raised concerns that Amazon’s warehouse conditions aren’t in line with current safety and social distancing guidelines. 

Workers have reported that the “circumstances of their work make it impossible to comply with public health protocols - reporting crowded spaces, a required rate of work that does not allow for proper sanitizing of work spaces, and empty containers meant to hold sanitizing wipes,” a group of New York legislators, unions, and Amazon employees said in a letter to CEO Jeff Bezos.

The same week the letter was filed, Amazon said it terminated a worker from one of its New York facilities after receiving “multiple warnings for violating social distancing guidelines.” 

In an interview with CNN, Amazon said it has enacted a number of measures to keep workers safe, including moving chairs and tables and staggering shifts and workstations. The company also said it has improved its cleaning procedure. 

Working in close proximity? 

Despite Amazon’s assurance that it is enacting precautions to ensure employees are as safe as possible, workers still have concerns. Mario Crippen, an employee at an Amazon site in Michigan, said that a bulk of what Amazon workers do can’t be done while social distancing. 

"In the packing department, there are no walls, so people are really shoulder-to-shoulder," he told CNN. "And then, in the dock ... sometimes there are two people inside the truck, and they can't get away from each other. The computers they need to run the dock are right next to each other. The way stuff works, you've got to be close to get things done and get packages out."

Amazon officials have called accusations of unsafe working conditions during the pandemic “unfounded.” 

“Nothing is more important than the safety of our teams,” a company spokesperson told CNBC. “Since the early days of this situation, we have worked closely with health authorities to proactively respond, ensuring we continue to serve customers while taking care of our associates and teams.”

Consumers have become much more conscious of gluten, with many people cutting it out of their diet completely. But despite that changing trend, researchers have found that those suffering from the worst kind of gluten intolerance are still dying young. 

Recent study findings using nationwide data show that those who have celiac disease have a higher risk of dying prematurely. 

"We have known that celiac disease can cause a number of long-term complications that can impact life expectancy, but this study examines an entire population in the most recent era, at a time when awareness of celiac disease and access to gluten-free food is widespread," explained first author Benjamin Lebwohl, Director of Clinical Research at the Celiac Disease Center at Columbia University. "Despite this, we found that celiac disease is associated with long-term consequences."

Increases risk of several health conditions

The researchers suggest that the driving force behind this increased risk of death was inflammation. The symptom is a hallmark of celiac disease, but it can also be a major symptom of other serious conditions.

The study findings showed that consumers who had celiac disease were more likely to develop other dangerous diseases like cancer, cardiovascular disease, and respiratory disease. Increased risk of death was found for all age groups that were studied, but they were the greatest in consumers who were diagnosed between the ages of 18 and 39. 

The researchers found that increased mortality risk was also greatest in the first year after diagnosis. "The intestinal inflammation is often most intense around diagnosis, and before a gluten-free diet has had an effect on mucosal healing,” explained study author Jonas F Ludvigsson. 

The full study has been published in JAMA. 

Multiple sclerosis (MS) is a disease that attacks the body’s nervous system by having a person’s own immune system break down the protective sheath -- called myelin -- that surrounds nerve fibers. The result is nerve damage that can create numbness, weakness, and paralysis, among many other tragic symptoms. 

Now, researchers say that a compound found in the peels of certain fruits like apples, prunes, and some herbs can help prevent further damage to nerves and actually repair the myelin that has been broken down. 

“Although the evidence is preliminary...it’s encouraging to see a compound that both halts and repairs damage in MS, in the lab,” said co-senior author of the study Dr. Guang-Xian Zhang, a professor at Thomas Jefferson University.

Reversing nerve damage

The compound the researchers identified is called ursolic acid, and the researchers say that it is “a great new lead for disease treatment.”

The team came to that conclusion after testing a concentrated version of the compound on mice who had already suffered chronic damage from MS. The mice were treated over the course of 60 days; at day 20, the researchers found that mice who were paralyzed at the start of the study were already able to walk around again. 

While muscle weakness was still a concern in these test subjects, the researchers say the results are very promising. There is more work to be done to fine-tune this type of treatment, but the researchers note that their work will not necessarily lead to a cure.

"It's not a cure, but if we see a similar response in people, it would represent a significant change in quality of life. And most significantly, it's a reversal, which we really haven't seen before with other agents at such a late stage of disease," said Zhang.

The full study has been published in the Proceedings of the National Academy of Sciences.

Mercedes-Benz USA (MBUSA) is recalling 9,791 model year 2018-2019 S560s and Maybach S560s with 4.0L 8-cylinder gasoline-engines.

Two engine oil plugs may not withstand high engine loads during driving, possibly resulting in an engine oil leak.

An engine oil leak can spill on to the road and cause slippery road conditions.

Additionally, if the engine runs out of oil it can cause an engine stall during driving.

Either of these can increase the risk of a crash.

What to do

MBUSA will notify owners, and dealers will replace the engine oil plugs free of charge.

The recall is expected to begin May 19, 2020. Owners may contact MBUSA customer service at (800) 367-6372.

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Allstate brought its “in good hands” jingle to life on Monday, saying that it would return more than $600 million in auto insurance premiums to its customers. Why? For the simple reason that most of the United States is staying at home and not out on the streets and highways in their cars and trucks.

“This crisis is pervasive. Given an unprecedented decline in driving, customers will receive a Shelter-in-Place Payback of more than $600 million over the next two months,” announced Allstate CEO Tom Wilson. 

“This is fair because less driving means fewer accidents. We are also providing free identity protection for the rest of the year to all U.S residents who sign up, since our lives have become more digital.”

Deal points

Allstate’s rebate program is called Shelter-in-Place Payback, and here’s what it includes:

Customers: Allstate, Esurance, and Encompass personal auto insurance customers. 

How much: Most customers will receive 15 percent of their monthly premium in April and May (which is where the $600 million number comes from). 

Where it will show up: The Payback will show up either through a credit to customers’ bank accounts, via a credit card, or in their Allstate account. 

When will it show up: The fastest way for customers to receive this payback is to utilize the Allstate Mobile app.  Allstate said it’s working with state insurance regulators to move forward as quickly as possible.

For consumers with financial challenges: The company added a benefit for insurance customers who may be facing money issues, too. “Allstate auto, home and powersport insurance customers facing financial challenges can request a special payment plan that delays payments for 60 days with no penalty,” the company said. 

Full details of Shelter-in-Place Payback are available, here.

Are other insurance companies doing the same thing?

In ConsumerAffairs research, we were hoping that other major companies would follow suit, but there’s not much in the way of good news there. The only other company currently making a move similar to Allstate is American Family, the 10th largest auto insurer in the U.S. It’s giving its customers a one-time full payment of $50 per vehicle covered by an American Family personal auto policy. All told, American Family says that rebate totals close to $200 million. 

In checking for similar announcements from other top 10 auto insurers -- Nationwide, State Farm, Progressive, Geico, Farmers, USAA, Liberty Mutual, and Travelers -- there were none published by the time this story was published.

Insurance watchdog says Allstate should be returning a LOT more

Dan Karr, the founder and CEO of free insurance grading service ValChoice, estimates that Allstate’s $600 million figure should be closer to $2 billion. Overall, his number-crunching came up with $100 billion in windfall profits that insurance carriers will gain due to the slowdown COVID-19 has created in vehicle use. 

Karr’s not trying to be a Debbie Downer. In fact, he told ConsumerAffairs he thinks the reductions that carriers are making are great, and they are to be commended. However, in his stepping back to share the bigger picture, he notes that sheltering-in-place mandates mean hundreds of thousands of fewer accidents and billions of dollars in claim dollars that won't be paid.

“Big-name insurance carriers will be the chief beneficiaries in this scenario, leaving consumers high and dry,” Karr said. “Consumers aren’t driving. They don’t need as much insurance coverage.”

How consumers can save money on auto insurance during the pandemic

If a consumer is backed by someone other than Allstate, Karr says they should immediately contact their carrier and ask for relief. When the insurance agent asks for a reason, Karr’s suggested response is to tell the agent that their vehicle use is no longer for job commuting. If that doesn’t do the trick, Karr’s other cost-saving moves include:

• Reducing the miles driven on the vehicle to 3000 or fewer per year

• Change use to “for pleasure”

• If the carrier uses mileage as an input, reduce the annual mileage

• For consumers who own their car, they can drop collision and comprehensive insurance

• If you don’t drive the car at all, you can drop liability insurance.

• If the vehicle is not being used at all, eliminate insurance

But what should consumers do if all else fails? Karr says that if the carrier refuses to make the adjustments, switch immediately. “Insurance companies must refund any unused amount of prepaid premiums should the consumer switch carriers,” he said.

The number of people around the world who have contracted the coronavirus continues to climb, with over 1.3 million confirmed cases being reported globally. However, a team of researchers say that number is only a small fraction of the number of people who have actually been infected.

Researchers from the University of Göttingen in Germany have analyzed statistics related to the outbreak and theorize that only 6 percent of the true number of cases is being reported, on average, in each country.

If true, this idea presents some frightening statistics; it would mean that global cases of the infection are actually in the tens of millions. Researcher Sebastian Vollmer says that taking all cases into account is important for informing regulators about what they should be doing to combat the virus.

"These results mean that governments and policy-makers need to exercise extreme caution when interpreting case numbers for planning purposes. Such extreme differences in the amount and quality of testing carried out in different countries mean that official case records are largely uninformative and do not provide helpful information," he said. 

U.S. far behind in detecting the coronavirus

While the average reporting rate for all countries is 6 percent, Vollmer and fellow researcher Dr. Christian Bommer say that different countries vary when it comes to the accuracy of their detection methods. 

They said that South Korea had likely discovered around half of all COVID-19 infections by the end of March. In contrast, countries like the United Kingdom and the United States were projected to only report about 1.6 percent and 1.2 percent of cases, respectively. The researchers chalk this up to the delayed response to the pandemic in these countries. 

In total, the researchers theorize that there have been over ten million coronavirus infections in the United States alone, which underlies the need for better detection methods to help protect consumers.

"Major improvements in the ability of countries to detect new infections and contain the virus are urgently needed," Bommer said.

The full study has been published in The Lancet Infectious Diseases.

Better get out your deposit slips, America. Not only do you have a COVID-19 stimulus check coming your way, but some of you will also see some fatter unemployment checks.

CNN reports that, depending on what state unemployment filers make their claim in, they’ll be seeing an extra $600 a week (for up to four months) on top of their regular state benefits. Congress is to be thanked for that, as part of the $2.2 trillion relief package and the Pandemic Unemployment Assistance (PUA) program the federal government put together to help curb the financial crush stemming from the pandemic.

The waiting is the hardest part

This initiative is just making the news because state officials were waiting for the federal Department of Labor (DOL) to lay out its guidance on the additional $600. After all, the federal government is the one backing the money. 

New Yorkers out of a job due to the pandemic will see their first fattened check this week. In Missouri, it could happen as early as the week of April 12. And for the Hoosiers in Indiana, they’ll have to wait in line a bit longer, to the week of April 20th.

However, CNN reports that there’s a whole slew of state officials that don't have the faintest idea of when they can get the new pandemic unemployment assistance program into play. The issue on the state level is that each state has its own way of handling unemployment, and an alteration like this forces a myriad of other changes within those systems -- informing workers how to respond to questions from filers, software, application interfaces, etc. 

Those states caught up in the conundrum include Ohio, Oregon, and Texas, which are reportedly still working on the process to send out the extra federal money. Then, there are other state officials that want to simplify the whole process as much as possible and not have to sweat it out by rewriting systems. Instead, they may opt to send the state and federal benefits separately.

A little homework is involved depending on where you live

Unemployment’s ever-changing landscape has to be taken into account, as well. Unfortunately, outside what the U.S. has etched in stone regarding unemployment benefits, the states are doing their own thing past the $600 bonus.

In Kentucky, for example, the state’s new unemployment provisions take care of those who would not traditionally be covered by unemployment insurance benefits, like employees who have not been terminated or laid off but have had their hours reduced. Those people are now eligible to receive unemployment benefits.

The DOL has made getting clued-in on the state level as easy as possible. Its state-by-state guide can help unemployed people get a bead on how these benefits will affect them better than anything else ConsumerAffairs found in our research. That guide is available here.

Amidst all the mandates and advice given by health officials during the current COVID-19 outbreak, there are still many people who are choosing to ignore public warnings and act in the way that they think is best. While this behavior may leave others shaking their heads, results from a new study may explain why this is happening. 

Researchers from The University of Texas at Arlington say that when it comes to medical emergencies, many people are much more likely to trust their gut and act based on their emotions, opinions, and the anecdotal stories that they’ve heard instead of cold, hard facts. 

"We found that people are more likely to consider personal anecdotes than fact-based information, especially when it deals with medical emergencies," said researcher Traci Freling. "This has a high importance in the current environment, where everyone is concerned about the coronavirus."

Emotional factors

Freling and fellow researcher Ritesh Saini came to their conclusions after analyzing 61 studies that measured the impact of evidence on persuasion. They found that one of the primary factors behind these behaviors is emotional engagement. 

They posit that consumers who feel vulnerable or anxious are much more likely to ignore fact-based evidence and stick with following their gut. That appears to especially hold true for situations when a person’s health is at risk.

"[People] are especially dismissive of facts if the incident is something they personally experienced," Freling explained. "Specifically, we show that when an issue is health-related, personally relevant or highly threatening, then decision-making is compromised and people tend to rely on anecdotes."

Facts still apply in some cases

While the findings certainly apply to many decisions being made during the current coronavirus outbreak, the researchers say there are areas of life in which facts are more heavily considered. Saini notes that people tend to make “"more fact-based decisions when choosing for others, but become surprisingly irrational when choosing for [themselves.]" 

Elten Briggs, the chair of the Marketing Department at The University of Texas at Arlington, says that the research “provides guidance on how to craft more influential messaging during times like these, when anxiety is heightened for so many people.”

The full study has been published in the journal Organizational Behavior and Human Decision Processes.