Allstate estimates that the program will return more than $600 million to its customers through credits to their bank accounts, credit cards or Allstate accounts.
The company says the fastest way to receive the rebate is through its mobile app.
"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," Chief Executive Tom Wilson said in a statement.
"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."
The company is also offering identity protection free for the rest of the year with no opt-out requirement.
U.S. residents are eligible for protection through Dec. 31 regardless of whether they are already Allstate customers or not by signing up in April or May.
"Shelter-in-place orders require us to work, take classes and visit friends virtually, which increases our exposure to cybercrime," the company said in its statement.
The Northbrook, Ill., insurer also said it planned to expand insurance coverage for customers who use their personal vehicles to deliver food, medicine and other goods for commercial purposes. Allstate's typical standard auto policies do not include that coverage.
Allstate shares were up 5.7% at $90.89.