What Would Happen If Everyone Stayed Home? You Might Get A Car Insurance Rebate
Covid-19 has had a profound impact on personal lives and budgets. Though there’s not much great economic news yet, one small glimmer of relief is the announcement that many auto insurers are providing refunds to their customers.
Insurers base their premiums on the likelihood of claims, and, with drivers logging fewer miles, cars are less prone to crashing.
Most major insurance companies are passing at least some of this windfall to you. Rates and time windows differ, though, and you should contact your insurer for the most up-to-date information if you have questions.
The following are some of the larger companies and their proposed plans:
- Allstate: If you’re in “good hands,” you can expect average refunds equal to 15% of premiums for April and May. They will deposit funds back to your credit card, bank account, or as a credit on your account.
- Farmers: Farmers is offering a 25% discount on April auto insurance premiums.
- Geico: The gecko is providing clients with both motorcycle and auto policies a 15% discount on six-month policies that renew between April 8 and October 7, 2020, and on 12-month policies that renew between April 8, 2020 and April 7, 2021.
- The Hartford: If your car insurance policy was in effect on April 1, you’ll get a 15% discount on two months’ worth of premiums.
- Liberty Mutual: Liberty Mutual is giving an automatic 15% refund on two months of car insurance premiums, via your most recent payment method or sent to your home by check.
- Nationwide: Says it is “by your side” and customers will receive a one-time $50 refund for each policy they have.
- Progressive: Progressive is providing a 20% credit on premiums paid in April and May, applied automatically to your account beginning in May or June.
- State Farm: Offering its good neighbors an average national rebate of 11%, payable when policies renew.
- USAA: Customers can expect a 20% rebate on two months of premiums if they had a policy in effect March 31.
Not all customers are receiving the same benefits. For example, some consumer groups have cited State Farm’s 11% offer as being less than generous. Also, some “non-standard” carriers, those used by low-income consumers, are refusing to provide relief, even though they will profit from the equation that fewer miles equal fewer crashes.
If your mileage has decreased significantly, contact your provider and ask for a rate that reflects that lower mileage. Didn’t get the refund you wanted from your provider? Make sure you don’t cancel without having another policy to replace it. Getting coverage may cost you more once you have been uninsured.
Fewer cars traveling fewer miles does not, unfortunately, mean there will be no accidents. If you find yourself in need of autobody repair, Cline Collision Center provides top-quality workmanship and customer service, including help navigating all insurance challenges. Call 707-591-9909 or contact us online today!