COVID-19 has changed the way Americans drive. This leads to savings in car insurance. (iStock)
Security experts made an interesting observation about car accidents – they fell in the early stages of the coronavirus pandemic as government lockdowns were more restrictive and fewer cars were on the road. This helped many motorists save on auto insurance.
Let’s look at the state of Ohio, where road traffic accidents decreased 55% in a two-week period between March 9 and March 22, 2020, compared to the same period in 2019.
Unfortunately, far more open roads led to an increase in car accident deaths, according to the National Safety Council. The number of road deaths rose 8% from 2019 to 2020 as more reckless driving occurred on sprawling roads and highways.
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Tips on saving car insurance
There are several ways to save money on car insurance, even as the pandemic seems to be easing. These tips should be central to the budget conscious auto insurance consumer. When you’re ready to start looking around, visit Credible to compare car insurance quotes and find the right car insurance company for you.
1. Bundle your insurance. A good way to save on auto insurance at any time is to bundle your auto insurance with other home insurance policies.
“Progressive, Geico and State Farm are some of the most popular insurance companies,” said Jim Pendergast, senior vice president at altLINE, a division of Southern Bank in Birmingham, Al. “These companies offer all types of insurance outside of auto insurance, which makes it easier to bundle your insurances and save in the long term.”
Pendergast lists Progressive as one of the highest customer satisfaction ratings in the auto insurance agency because it is highly customizable. “But to get the discounts, you have to install a device that sends data to Progressive, and consumers should know that,” he said. “Geico consistently offers its customers low prices, but they receive a lot of complaints about missing payouts. Additionally, State Farm is known for giving their customers substantial payouts, but they typically don’t give discounts. ”
For the best deal, motorists should visit Credible to compare insurance rates from multiple auto insurance companies in minutes.
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2. Ask for a discount (and refund) for reduced driving. The cost of car insurance is based on the likelihood of being involved in an accident. Many Americans have moved to work from home and these drivers may be eligible for lower car insurance rates thanks to small mileage discounts.
“If you drive little or no driving, the risk drops dramatically – and so does your premium,” said Andrew Latham, certified personal financial advisor and editor in chief of SuperMoney.com.
Latham recommends calling your insurance carrier and asking for a refund. “Let them know how many miles you are driving on average now and request lower premium rates,” he said. “If you used to drive 20,000 miles or more a year and now drive 12,000 or less, ask for a 25% discount (or a refund). When it has dropped to 5,000 miles or less, ask for a discount of up to 45% to 50%. “
3. Stop your reporting. When you stop driving, consider cutting off your motorist coverage altogether.
“It’s so easy to call your auto insurance company and request a six-month or twelve-month break,” Latham said. “However, think twice before pausing or canceling your coverage unless you have no intention of driving and the vehicle is stored safely (and off-road).”
Latham recommends drivers switch to auto insurance that will track your driving and calculate for miles when there is a chance that you will need to drive your vehicle. “For example, Metromile is an insurance company that charges you a base rate of $ 29 and then charges you six cents per mile,” he said. “The average driver saves around $ 740 a year by switching to a pay-per-mile policy.”
HOW TO CHANGE YOUR CAR INSURANCE
4. Change your policy based on your driving style. Auto insurance consumers can change their policies based on good driving habits and save money in the process.
“There are three main insurance options for motorists,” said Tomer Kashi, CEO and co-founder of VOOM, an insurance technology company based in San Francisco, California.
- Traditional annual bonus. “Auto insurance consumers can apply for a top-up that maintains coverage at a reduced rate for a period of time when a vehicle is not in use,” said Kashi. “This isn’t particularly helpful for most drivers as driving is a fairly regular activity.”
- Pay as you drive. This insurance model requires a way to track one’s driving behavior, collect data and quote accordingly.
- Pay while driving. “The pay-as-you-drive model enables more infrequent drivers to avoid payments when their vehicles are idle in the garage, “said Kashi.” Because idle times do not require waiting, drivers have the greatest flexibility and can adjust their insurance costs based on actual vehicle usage. “
To cover as much auto insurance territory as possible, use Credible to view multiple insurance benefits and features in minutes. You can compare car insurance rates and see if you are eligible for a lower premium.
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