Allstate will likely grant another auto insurance rebate as pandemic cuts driving – CEO

By Suzanne Barlyn

(Reuters) – Insurer Allstate Corp. will likely grant an additional rebate to auto insurance customers due to reduced driving during the coronavirus outbreak, its Chief Executive Officer Tom Wilson said in an interview on Tuesday.

A second round of rebates would be tailored to reflect the incidence of reduced driving in specific geographies, Wilson said.

Allstate Corp, one of the largest U.S. auto insurers, said on April 6 it would return more than $600 million in premiums to customers as many Americans drive less due to stay-at-home orders aimed at curbing the spread of the coronavirus outbreak. [L1N2BU0PO]

The insurer has been issuing a “payback” to most customers of 15% of their monthly premium in April and May, the company had said.

Allstate would likely make “additional adjustments” to the program if customers continue to drive less, Wilson said.

(Reporting by Suzanne Barlyn in Washington Crossing, Pennsylvania; Editing by Chris Reese and Sonya Hepinstall)