Car Insurance May Cost Less Amid COVID-19 Pandemic

As more drivers stay home because of coronavirus, caring for the kids or because they were shut out of their jobs, chances are auto insurance may cost less. Fewer commuters are using their cars to get to work. Also, since kids are at home, there are no school buses and parents no longer have to drop off or pick up their kids at school.

So, if you are having your vehicle sitting in your driveway, your premiums may be lower. Remember, when auto insurers set their premiums, the number of miles driven is part of the calculation. So, if you aren’t driving that much, you shouldn’t be paying that much. Also, the likelihood of an accident drops when there are fewer cars on the road.

Will You See Lower Car Insurance Premiums?

It’s too soon to tell as the government is still working on multiple relief packages. The National Association of Insurance Commissioners (NAIC) say that once we move pass the initial critical phase of the outbreak, they will welcome the involvement of all participants on evolving issues – the health and safety of consumers is their priority. However, it’s too early to qualify based on the drop in miles we will see nationwide.

Some consumers may already have mileage discounts due to telematic products plugged into their vehicles to monitor speeding, short stops, and other driving actions. If you have been a great driver with good habits, you may be eligible for discounts with some insurance companies.

Insurance is adjusted based on data both in a downward and upward direction. Contact us if you have any questions regarding auto insurance or if you would like to update your policy amid the coronavirus outbreak.