insurance

Coronavirus Car Insurance Rebates for the Road Less Traveled

People are driving less, and that means big auto insurance companies such as State Farm, Allstate and Geico are giving coronavirus-related rebates.

The coronavirus pandemic has torpedoed the economy, our health care system and our everyday lives, but here’s some good news: There’s a good chance you’ll pay less for your car insurance.

With fewer drivers on the road, and therefore fewer claims, U.S. auto insurers are lowering insurance rates, through credits against future premiums or refunds of money already paid. American Family Insurance, which writes policies mainly in the Midwest, was the first insurer to act, offering one-time $50 refunds for each insured vehicle. Since then, all of the major auto insurers have offered some form of relief. And more discounts could be coming if millions of Americans continue to work from home and avoid non-essential travel. A study by the Consumer Federation of America, an advocacy group, and the Center for Economic Justice, an insurance, credit and utilities advocacy group, concluded that the relief offered so far is insufficient given the likely drop in insurance claims.

Insurers have adopted different approaches to premium relief. For example, Allstate and Liberty Mutual granted 15% refunds on premiums for April and May, while Geico announced a 15% refund, but only as customers’ policies come up for renewal between April 8 and October 7, 2020. State Farm, the largest U.S. auto insurer, said customers can expect to receive a credit of about 25% on premiums paid from March 20 through May 31. USAA will provide a 20% credit on two months of premiums while Progressive and Farmers announced a 20% and 25% refund, respectively, for the month of April.

If your mileage has decreased significantly and your insurer hasn’t offered any refunds or credits, contact your provider and ask for a rate that reflects your lower risk, says Doug Heller, insurance consultant for the Consumer Federation of America. If you’re unable to get results, don’t cancel your policy until you’ve found one to replace it. In most states, if you go without coverage, insurance companies will charge you more once you return to the market, he says.

Most Popular

Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
October 15, 2020
Election 2020: States With Tax Questions on the Ballot
Politics

Election 2020: States With Tax Questions on the Ballot

On November 3, voters in 17 states will weigh in on a variety of proposed changes impacting taxes on everything from property to pot.
October 15, 2020
Will Joe Biden Raise YOUR Taxes?
taxes

Will Joe Biden Raise YOUR Taxes?

There's little doubt that, if elected, Joe Biden will try to raise taxes for some people. Will you be one of them?
October 16, 2020

Recommended

How Much Insurance Should You Get? A Lawyer’s Advice
insurance

How Much Insurance Should You Get? A Lawyer’s Advice

The advice to “Only pay for what you need” sounds good. But when it comes to home, auto and business insurance coverage, four guidelines could help de…
October 12, 2020
7 Things Medicare Doesn’t Cover
Healthy Living on a Budget

7 Things Medicare Doesn’t Cover

Medicare Part A and Part B leave some pretty significant gaps in your health-care coverage. Here's a closer look at what isn't covered by Medicare.
October 1, 2020
Your Guide to Open Enrollment
health insurance

Your Guide to Open Enrollment

Your options may look a little different this fall. Meanwhile, the cost of coverage continues to climb.
October 1, 2020
How to Pick the Right Medicare Plans for You
Healthy Living on a Budget

How to Pick the Right Medicare Plans for You

As you're signing up for Medicare, you must learn the basics of Medicare Part A, Part B, Part D, medigap plans, Medicare Advantage plans and even doug…
September 30, 2020