Allstate cuts auto insurance rates by 5% in Illinois as driving remains depressed almost a year into the pandemic

  • In Business
  • 2021-01-23 02:23:00Z
  • By Chicago Tribune

Allstate is reducing auto insurance rates for Illinois policyholders by an average of 5%, according to filings with the state Department of Insurance.

Though driving levels have picked up from last spring, when a statewide stay-at-home order left streets and highways empty, miles driven are still about 10-15% below pre-pandemic levels, Allstate said in the filing.

The pandemic has changed day-to-day routines for many people, leading to a rise in online shopping and remote work, which has meant fewer drivers on the road, the insurer said.

"Once the pandemic recedes, we expect these conditions to abate although it is possible the pandemic has led to some long-term changes in behavior," Allstate said.

There are other changes that could increase or decrease future mileage levels, the insurer said. That includes the effectiveness of a COVID-19 vaccine, commuting behavior, gas prices and spikes in coronavirus infections that could lead to more restrictions.

Last year, Allstate issued a rebate of about $1 billion to its auto policyholders nationwide because fewer drivers were on the road. Rival insurers including State Farm made similar commitments.

In June, State Farm said it would cut auto rates in Illinois by 13.7% as part of a nationwide rate reduction. At the time, the insurer said it estimated 2.8 million people would save a total of $320 million because of the rate cut.

"Our rates remain below pre-COVID levels after announcing a nearly 14% reduction last year in Illinois. We are continuously monitoring and adjusting trends, making sure we're accurately matching price to risk in order to minimize the impact on customers as much as possible," State Farm spokeswoman Gina Morss-Fischer said in an email Friday.

Progressive increased auto rates by an average of 4.2% for most of its Illinois policyholders in the fall, after having lowered them by about 10% in the summer.


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