Allstate said Tuesday it will extend its coronavirus rebate through June 30, returning a total of roughly $1 billion in auto insurance premiums to customers over three months.
Last month, the Northbrook-based insurer introduced its “Shelter-in-Place Payback” program because fewer drivers are on the road as a result of coronavirus state lockdowns. The firm, one of the first insurers to offer rebates to customers, said at the time that it would return $600 million to Allstate, Esurance and Encompass auto policy customers. Most policyholders received 15% of their monthly premiums credited back to their accounts in April and May.
With the program’s extension, Allstate motorists will continue to receive a 15% credit through the end of June. In addition, Allstate extended the sign-up period for its free identity protection product to June 30. Customers who aren’t policyholders can also sign up for the service, which is free through the end of the year.
“Allstate is continuing to support customers during the pandemic by extending our Shelter-in-Place Payback,” Allstate CEO Tom Wilson said in a news release. “While more people are back on the roads, the numbers of less severe accidents are below historical levels so the payback will continue through June, representing approximately $1 billion back to customers over three months.”
The number of miles driven nationwide fell 38% between March and May 9, according to Arity, a mobility data and analytics firm owned by Allstate.
Rival insurers have also extended their rebates. American Family Insurance announced last week it would return $425 million to auto insurance customers, up from the $200 million previously announced in April. The Madison, Wisconsin-based insurer will give a 10% credit on personal auto policies from July 1 to Dec. 31. American Family said it is waiting on regulatory approval from several states, including Illinois, to move forward with the rebate.
Separately, Bloomington-based State Farm announced it will cut auto insurance rates by $2.2 billion. The insurer estimates the national average for those cuts to be 11%.
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