The number one rule for getting the best deal on insurance has always been to “shop around,” getting multiple quotes for the same coverage and going from there. Using an independent agent or broker makes comparison shopping fairly painless since they’ll do most of the legwork for you and present you with multiple options they’ve thoroughly researched to best meet your specific insurance needs. This has never been more important than during the present Coronavirus emergency.
You’ve likely been driving significantly less during the coronavirus pandemic – or perhaps not driving at all – no longer commuting to work and just staying at home most days. And while this nationwide decrease in driving has affected the economy because of less fuel demand, it’s also brought with it a significant decline in vehicular accidents, which is good news for the vehicle insurance companies.
In a recent University of California-Davis study, the number of vehicle accidents and injuries has declined by approximately 50% since stay-at-home measures were instituted in California. These statistics likely apply nationwide to some degree.
Their Profits Are Huge
The point is, auto insurance companies are making huge profits since their claims payouts have declined so significantly. As a result, some large insurers are openly acknowledging that they’ve been charging their policyholders too much in premiums during the Covid-19 crisis and have begun giving money back to customers.
Other insurance companies that haven’t volunteered to give money back to clients have come under increasing pressure to do so. The Consumer Federation of America, a consumer advocacy group, and the Center for Economic Justice have sent a letter to state insurance commissioners stating that, unless companies give money back to their policyholders, they will be charging excessive and unreasonable premiums based on outdated estimated miles-driven data. It may be a simple matter of contacting your insurer to claim your refund.
Consider Spending Some Time Here
Once you’ve spent some hours manicuring the yard, organizing the closets and oiling each and every squeaky hinge in your home, consider spending some time going over your current insurance policies. A recent study found that, if you’ve never compared auto insurance policies or considered switching from your current insurance provider, you could be paying an extra $400-$1800 per year on your coverage. With the stay at home order, this is the ideal time to do some serious comparison shopping. Let us help.