How to get a break on your car insurance during coronavirus pandemic
By
Staff, AccuWeather
Published Apr 20, 2020 8:25 PM EDT
Highways in Baranzate, Italy, were empty on March 15, as a lockdown continued across the country due to coronavirus.
The sweeping spread of COVID-19 is bringing travel across the world to a grinding halt. Airlines are scaling back flights even more and tighter coronavirus restrictions are leading to fewer vehicles on the road due to “safer at home” orders in dozens of states. New data from traffic tracker Inrix finds personal vehicle travel in the U.S. is down nearly 50% compared with typical traffic volume. This means lower risks for insurance companies and a drop in those pricey premiums. These insurance companies are paying it forward so to speak. The Insurance Information Institute (I.I.I.) reports insurers will pass on more than $10 billion in savings to its customers. This will undoubtedly help budget-conscious Americans have one less worry thanks to a lot of economic anxiety fueled by the COVID-19 pandemic. Insurers are doing everything from issuing rebates, relaxing payment schedules, and not allowing customers’ policies to lapse.
Photo by Sarah Brown
Sarah Brown
State Farm, the country’s largest auto insurer, is giving policyholders a whopping 25% credit on premiums paid between March 20th and May 31st. This credit will put $2 billion dollars back in the pockets of policyholders.
Chubb Auto Insurance is one-upping State Farm and other insurers, by giving customers a massive 35% reduction in April and May premiums. The company also plans to extend some additional discounts over the next few months. CBS MarketWatch reports Chubb Insurance policyholders will save about $110 per vehicle.
Allstate customers will be in good hands with a 15% rebate on premiums for two months. The “Shelter-in-Place Paybacks” program will cost Allstate about $600 million.
Photo by Humphrey Muleba
Humphrey Muleba
Liberty Mutual is following suit with Allstate by issuing the same rebate to customers. The 15% rebate on premiums for two months will cost Liberty Mutual about $250 million.
Geico Insurance is taking a more unique approach to helping policyholders save money during the coronavirus pandemic. The insurer will give customers a 15% discount on policies that are up for renewal between March and October.
Nationwide is giving a one-time premium refund of $50 per policy for personal auto policies active as of March 31, 2020.
Photo by Heidi Walley
Heidi Walley
USAA Insurance is geared toward military members and their families. The carrier announced a 20% credit for policyholders on two months of premiums.
Farmers Insurance and its subsidiary, 21st Century Insurance, are giving policyholders a 25% rebate for April premiums.
Progressive is giving customers a break by giving a 20% credit on April and May premiums. A representative says the April credit will appear on the May statement and the May credit will appear on the June statement. If your insurer is on the list, you’ll likely see the refunds and rebates applied automatically in the form of premium reductions or account credits.
A lot of insurers are still struggling to adapt to the new normal the coronavirus pandemic is creating. They may have a plan in the works but might not be ready to release it just yet. Here is what to do if your insurer hasn’t yet offered a discount.
-
Call your insurer. Getting a cheap rate or discount may be just a phone call away. It doesn’t hurt to ask if there are ways to save on your monthly insurance bill.
-
Email a local insurance agent. Making a local connection may be the key in driving down your insurance premiums. You can always inquire about any COVID-19 relief programs that may be coming or if there are more immediate options to saving some money.
-
Contact your State Insurance Commissioner. If you’re running into roadblocks in trying to get a cheaper insurance bill during this coronavirus-fueled hardship, you may have to bring in the big guns and contact the State Insurance Commissioner. The Commissioner has complete oversight of insurance rates in your state. They can likely tell you if a refund is on the horizon or may be able to give the local agent a nudge to get the ball rolling.
While these rebates and credits can provide short-term relief, there are two things you can do to save money in the long run.
-
Ask for a mileage discount. Insurers usually provide deep discounts to drivers who don’t sue their cars very often. Most cars are now parked in the driveway since non-essential travel is being discouraged during the coronavirus pandemic. Simply call your insurer and tell them how many miles you drove before the COVID-19 restrictions started and compare that to how many miles you drive now. Some insurance companies may wait until the policy is renewed to give the discount, but others may give you some immediate help.
-
Adjust your coverage. Changing your deductible can save you a little cash. If your car is older, you may not need comprehensive and collision coverage on it. It’s important to note that if your car is leased or financed, it’s unlikely you can drop certain coverage.
-
Do not let your insurance lapse. It’s tempting to just let your insurance lapse since your vehicle is parked and not being used. However, this is the last thing you should do as it could end up costing you more if you start a new policy. If you’re struggling to pay the minimum monthly payment, contact your insurer immediately to best discuss your payment options.
This relief from the insurance companies is just another layer of help on the way to help Americans struggling with making ends meet during this unprecedented COVID-19 pandemic. Millions of Americans are slowly starting to receive stimulus checks of up to $1,200 per adult and $500 per child in the household. With no end in immediate sight to coronavirus’ deadly grip on our daily lives, it’s critically important to stay up to date on the latest guidance at the local, state, and federal levels. AccuWeather has in-depth coverage of COVID-19 from around the globe. You can track the coronavirus spread on an interactive map right down to your city, plus stay on top of the newest developments with information that is updated around the clock. If you’re on the go, take our COVID-19 coverage with you. AccuWeather has launched a new podcast focused on coronavirus that you can listen to here. We’re also constantly providing new information on our Twitter and Facebook social media pages.
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How to get a break on your car insurance during coronavirus pandemic
By Staff, AccuWeather
Published Apr 20, 2020 8:25 PM EDT
Highways in Baranzate, Italy, were empty on March 15, as a lockdown continued across the country due to coronavirus.
The sweeping spread of COVID-19 is bringing travel across the world to a grinding halt. Airlines are scaling back flights even more and tighter coronavirus restrictions are leading to fewer vehicles on the road due to “safer at home” orders in dozens of states. New data from traffic tracker Inrix finds personal vehicle travel in the U.S. is down nearly 50% compared with typical traffic volume. This means lower risks for insurance companies and a drop in those pricey premiums. These insurance companies are paying it forward so to speak. The Insurance Information Institute (I.I.I.) reports insurers will pass on more than $10 billion in savings to its customers. This will undoubtedly help budget-conscious Americans have one less worry thanks to a lot of economic anxiety fueled by the COVID-19 pandemic. Insurers are doing everything from issuing rebates, relaxing payment schedules, and not allowing customers’ policies to lapse.
Photo by Sarah Brown
State Farm
State Farm, the country’s largest auto insurer, is giving policyholders a whopping 25% credit on premiums paid between March 20th and May 31st. This credit will put $2 billion dollars back in the pockets of policyholders.
Chubb Auto Insurance
Chubb Auto Insurance is one-upping State Farm and other insurers, by giving customers a massive 35% reduction in April and May premiums. The company also plans to extend some additional discounts over the next few months. CBS MarketWatch reports Chubb Insurance policyholders will save about $110 per vehicle.
Allstate
Allstate customers will be in good hands with a 15% rebate on premiums for two months. The “Shelter-in-Place Paybacks” program will cost Allstate about $600 million.
Photo by Humphrey Muleba
Liberty Mutual
Liberty Mutual is following suit with Allstate by issuing the same rebate to customers. The 15% rebate on premiums for two months will cost Liberty Mutual about $250 million.
Geico
Geico Insurance is taking a more unique approach to helping policyholders save money during the coronavirus pandemic. The insurer will give customers a 15% discount on policies that are up for renewal between March and October.
Nationwide
Nationwide is giving a one-time premium refund of $50 per policy for personal auto policies active as of March 31, 2020.
Photo by Heidi Walley
USAA
USAA Insurance is geared toward military members and their families. The carrier announced a 20% credit for policyholders on two months of premiums.
Farmers Insurance & 21st Century Insurance
Farmers Insurance and its subsidiary, 21st Century Insurance, are giving policyholders a 25% rebate for April premiums.
Progressive
Progressive is giving customers a break by giving a 20% credit on April and May premiums. A representative says the April credit will appear on the May statement and the May credit will appear on the June statement. If your insurer is on the list, you’ll likely see the refunds and rebates applied automatically in the form of premium reductions or account credits.
Photo by FirmBee
What to do if your insurance carrier is not offering a discount
A lot of insurers are still struggling to adapt to the new normal the coronavirus pandemic is creating. They may have a plan in the works but might not be ready to release it just yet. Here is what to do if your insurer hasn’t yet offered a discount.
Call your insurer. Getting a cheap rate or discount may be just a phone call away. It doesn’t hurt to ask if there are ways to save on your monthly insurance bill.
Email a local insurance agent. Making a local connection may be the key in driving down your insurance premiums. You can always inquire about any COVID-19 relief programs that may be coming or if there are more immediate options to saving some money.
Contact your State Insurance Commissioner. If you’re running into roadblocks in trying to get a cheaper insurance bill during this coronavirus-fueled hardship, you may have to bring in the big guns and contact the State Insurance Commissioner. The Commissioner has complete oversight of insurance rates in your state. They can likely tell you if a refund is on the horizon or may be able to give the local agent a nudge to get the ball rolling.
Photo by Stevepb
How to save money on car insurance
While these rebates and credits can provide short-term relief, there are two things you can do to save money in the long run.
Ask for a mileage discount. Insurers usually provide deep discounts to drivers who don’t sue their cars very often. Most cars are now parked in the driveway since non-essential travel is being discouraged during the coronavirus pandemic. Simply call your insurer and tell them how many miles you drove before the COVID-19 restrictions started and compare that to how many miles you drive now. Some insurance companies may wait until the policy is renewed to give the discount, but others may give you some immediate help.
Adjust your coverage. Changing your deductible can save you a little cash. If your car is older, you may not need comprehensive and collision coverage on it. It’s important to note that if your car is leased or financed, it’s unlikely you can drop certain coverage.
Do not let your insurance lapse. It’s tempting to just let your insurance lapse since your vehicle is parked and not being used. However, this is the last thing you should do as it could end up costing you more if you start a new policy. If you’re struggling to pay the minimum monthly payment, contact your insurer immediately to best discuss your payment options.
Photo by Queven
This relief from the insurance companies is just another layer of help on the way to help Americans struggling with making ends meet during this unprecedented COVID-19 pandemic. Millions of Americans are slowly starting to receive stimulus checks of up to $1,200 per adult and $500 per child in the household. With no end in immediate sight to coronavirus’ deadly grip on our daily lives, it’s critically important to stay up to date on the latest guidance at the local, state, and federal levels. AccuWeather has in-depth coverage of COVID-19 from around the globe. You can track the coronavirus spread on an interactive map right down to your city, plus stay on top of the newest developments with information that is updated around the clock. If you’re on the go, take our COVID-19 coverage with you. AccuWeather has launched a new podcast focused on coronavirus that you can listen to here. We’re also constantly providing new information on our Twitter and Facebook social media pages.
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