Allstate says it will probably grant an additional rebate to auto insurance customers due to reduced driving during the coronavirus pandemic.
On April 6, Allstate announced it would return more than $600 million in premiums to customers because many Americans were driving between 40 per cent and 55 per cent less due to stay-at-home orders initiated to curb the spread of the virus.
Speaking in an interview with Reuters, Allstate chief executive Tom Wilson noted people have started to drive a little more in April but still 30-40 per cent less than before the pandemic, prompting him to say, “I think it’s likely that there will be a next time and when we do it, we will be more precise.”
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Wilson added the insurance company is currently in the process of distributing the initial $600 million ‘payback’ by cutting 15 per cent off customers’ monthly premiums in April and May.
Allstate hasn’t said when the second wave of rebates could come but said it will take longer to develop a tailored approach to customers rather than issuing a flat 15 per cent rebate to all customers as it did previously.
The CEO said there has been an increase in driving in areas where people are no longer bound by stay-at-home orders but also in places where these orders remain. Additionally, driving patterns have changed, with driving in urban areas down by 50-60 per cent compared to rural areas where driving may be down just 20 per cent.
