America is driving less due to the COVID-19 situation. This could lead to all kinds of potential perks, such as less oil and gas consumption and less pollution. Not only can driving fewer miles be good for the environment, it can be good for your wallet, too. Right now, less time spent behind the wheel could also lead to an auto insurance rebate.
Coronavirus Cuts Traffic and Auto Insurance Premiums
According to traffic data provider INRIX, travel in personal vehicles in America has been nearly cut in half due to coronavirus stay-at-home orders in much of the country. Less driving means lower auto insurance premiums for many customers. This is especially true for people who insure their car with one of the major players in the auto insurance industry.
A good number of car insurance companies are offering rebates and policy credits of at least 15%, while others are offering customers up to 15% back. The offers vary by insurer, and in duration – the apparent trend showing these savings for around two months.
However, this isn't set in stone. Some insurance companies are offering the programs for April and May, others are extending them for only one month, while others offer discounts beginning as far back as mid-March.
Here are just a few of the insurance companies offering savings for their customers:
- AAA – 20% refund for policies effective March 16 through May 15
- Allstate – 15% discount on premiums in April and May
- Auto-Owners – 15% discount on April and May premiums
- Farmers Insurance – 25% credit on April premiums
- Nationwide – $50 one-time refund per policy
- State Farm – 25% credit (varies by state) for policies between March 20 and May 31, credits should be applied automatically in June
- USAA – 20% credit on two monthly premiums, applied automatically
Many policyholders don't need to do anything to get these rebates, as companies are applying them automatically. If you're unsure whether or not your car insurance provider is participating in a similar program, the best thing to do is ask them. Some providers are offering programs only for those that call to say they need assistance.
Trouble Keeping Up Payments?
If you're having trouble keeping up with your auto insurance payment, the worst thing you can do is to let your insurance lapse. This may cause more fees and headaches than it's worth, not to mention it may impact your eligibility for future rates and discounts. Even if your insurance provider isn't officially offering any special help due to the effects of COVID-19, they may still be able to help if you communicate with them.
Insurance providers, much like auto lenders, often do what it takes to help their customers when they can. Some may even be able to offer to defer the payment of your premium.
In these unique times, insurance providers aren't the only businesses offering help. Many automakers are also reaching out to assist customers who've been impacted by the coronavirus pandemic, or its effects on the American economy.
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