- During the COVID-19 pandemic, 57% of the auto insurance industry offered some form of payment relief, Make sure find.
- But only 10% of these relief measures went beyond May.
- Despite the driving rate and declining claims during the pandemic, insurance companies have not lowered premiums accordingly, which could result in a 6% increase in monthly rates in 2021.
- But if you’re trying to save money, you shouldn’t terminate your auto insurance as it can lead to DMV reestablishment fees and lost discounts.
- Visit the Business Insider homepage for more stories.
The current COVID-19 pandemic has resulted in the loss of a few million jobs in the United States, sending shock waves through the economy. It has touched every aspect of life, including how often people drive and how insurance companies have responded.
Kacie Saxer-Taulbee, data scientist on the insurance comparison site Make sure, told Business Insider that the company’s analysis of the
The industry’s response to the pandemic found that 57% of insurers offered some kind of payment relief last spring. Usually, this took the form of a 10-30% credit, refund or discount on an insured’s monthly payment.
“However, only 10% of these relief measures continued after May,” Saxer-Taulbee said.
Business Insider reported last month that despite auto insurance companies offering $ 10 billion in discounts and rebates during the pandemic, customer satisfaction is still low. Many indicated that they wanted to change carriers because they were not aware of the discounts.
But don’t be so quick to cancel your auto insurance just because you drive less. Saxer-Taulbee said Insurify has found that a simple two-month break in coverage can cost the average US driver nearly $ 200.
“This figure is the combination of DMV reinstatement fees and lost insurance discounts,” she said.
When an insurance company finds that your history has a coverage issue, they will consider you a higher risk of cancellation in the future. They will therefore charge you more up front in order to proactively recover some of these costs.
If you’re looking to save money, there are smarter ways to do it instead of simply terminating your auto insurance. Saxer-Taulbee suggested putting your car away, reducing your coverage, and comparing the rates of different insurance companies.
But she ended with a warning: “Even though driving and claim rates fell in 2020, most insurers haven’t lowered auto insurance prices in response. Unless providers decide to lower premiums, monthly payments are expected to increase by 6% in 2021.. “