You Should Be Paying Less for Auto Insurance Right Now

Here’s how to get a better rate.

If you’re like millions of other Americans who own or lease a car, you know how expensive it is. Gas, maintenance, car payments, and insurance premiums add up. But while you may not be able to control gas prices or whether you get a flat tire, you can save on insurance costs, and right now that’s easier than ever.

Thanks to the COVID-19 pandemic, millions of people are now stuck at home. And unless you’re an essential worker, your car is probably sitting unused in the garage, save for the occasional trip to the grocery store. You may already be saving on gas, but what you might not realize is that you should be saving on car insurance, too.

Why’s that?

Well, fewer people on the road means fewer accidents, which means insurance companies don’t have to pay as much, either. When the number of payouts drops, it means you may be able to score bigger savings on your premium.

How do I save?

A number of major auto insurance companies are offering refunds for portions of insurance premiums, while others are offering discounts to policyholders. If you have a policy with Allstate, Farmers, Geico, Liberty Mutual, Progressive, Nationwide, State Farm, or USAA, you can expect some sort of discount on your premium for April and May 2020.

Of course, the amount you receive will depend on your insurer. State Farm’s rebate policy, for example, will give drivers an automatic rebate that adds up to about 25% of your premium as long as you had insurance in effect between March 20 and May 31. If you have a Nationwide policy, you’ll get a one-time $50 refund instead.

Rebates aren’t the only way to save.

If you are, in fact, driving much less than you were before, you may be able to get discounts for which you previously did not qualify. If you aren’t making that 30-minute commute because you’re working from home, you should call your insurance provider and ask about a low-mileage discount or whether your rate can be otherwise reduced.

But I’m not driving less!

If you’re not driving any less than you were before, you may still be able to get a reduced rate. Because there are fewer cars on the road, the overall amount you pay for your premium may dip, too. However, you may not be able to get this discount unless you speak to your provider directly.

Are there other ways to save?

We’ve talked about other ways to save in different blog posts, so we encourage you to check those out for even more saving ideas. The short answer, though, is that yes! There are other ways to save on your insurance. For example, you could change the level of coverage you have and raise your deductible, which overall will lower your rates.

Though it might be tempting to drop coverage altogether, this is a move that’ll likely cost you in the long run. When you pick coverage up again, you’ll probably face even higher rates, as insurers treat gaps in coverage as a high risk. Instead, you’re better off searching for a different provider. Comparison sites make it easy to figure out where you can get the coverage and rates that fit your budget best. You could have a better quote within minutes. If you find a better rate, you could switch providers, or use that quote to bargain a better rate from your current insurer.

However, just remember that the best provider now might not be the best provider in a year or even six months. Insurance companies change constantly, so it’s worth comparison shopping every six months or so, or whenever you go through a major life change.