The novel coronavirus, COVID-19, has had a major economic impact in addition to being a public health disaster. But while social distancing to slow the spread of the virus has mostly had an adverse impact on family finances, there's one area where it could help you save: your auto insurance premiums.
Car insurance premiums are priced based on the likelihood of an accident occurring. And with people driving far fewer miles and fewer motorists on the roads due to stay-at-home orders, the chances of a collision are far less likely.
Because of that, many auto insurers have announced they'll be providing refunds to their customers.
Which car insurers are offering refunds on insurance premiums?
So far, nine major auto insurers have announced their customers will get a rebate on their insurance premiums. Here are the companies, along with their announced plans for discounts:
- Allstate: Customers can expect average refunds equal to 15% of auto insurance premiums for April and May. Refunds will be deposited back to your chosen payment method (credit card or bank account) or will be applied on your account as a credit.
- Farmers Insurance: Farmers is offering a 25% discount on April auto insurance premiums. If you've paid your bill in full, you'll get a refund. If you still owe, you'll get the money off your next month's bill.
- Geico: Customers with both motorcycle and auto policies will get a 15% discount on six-month policies that renew between April 8 and October 7, 2020 and on 12-month policies that renew between April 8, 2020 and April 7, 2021. The discount will be applied automatically at renewal and is expected to average around $150 for auto customers and $30 for motorcycle insurance policies.
- The Hartford: If your car insurance policy was in effect on April 1, you'll get a 15% discount on two months' worth of premiums from The Hartford.
- Liberty Mutual: Customers will get an automatic 15% refund on two months' worth of car insurance premiums. Refunds will be applied to your most recent payment method or will be sent by check.
- Progressive: Progressive is providing a 20% credit on premiums paid in April and May. Credits will start being applied automatically to your account beginning in May or June.
- Nationwide: Auto insurance customers will get a one-time $50 refund for each policy they have with Nationwide.
- State Farm: If you had insurance in effect between March 20 and May 31, you'll get an automatic rebate averaging around 25% of premiums. The credits will be automatically applied to your account in June for most customers.
- USAA: Customers can expect a 20% rebate on two months of premiums if they had a policy in effect March 31.
This extra savings could come in handy
The premium rebates you're getting aren't a fortune, but it's still nice to get some cash back.
If money is tight during the COVID-19 crisis, the savings could help a little bit. And if you don't need the extra cash right now, you could always use it to bulk up your emergency savings, to support a local business, or to make a small investment in some stocks likely to do well during the coronavirus crisis.