Reduced Insurance rates during Covid-19 may prove useful to those who find themselves mostly staying at home. When calculating insurance for personal vehicles, most companies consider many factors. The first thing they look at is often the cost of the car you drive. Following that, they consider engine size, safety reports for the make and model, your driving record, and how much repairs will cost.
If you own a fairly low-cost car and still find that your insurance premiums run high, you are likely seeing increased rates due to other factors. Most companies calculate insurance based on risk. If you have a record of relatively frequent car accidents, you may find that you wind up paying higher premiums. Even if you weren’t at fault, living in a high-risk area such as a metropolitan city can affect your rates.
Agencies also factor in the typical distance you drive. When you are scouting rates, websites or agents may ask you the mileage on your car and how much you usually drive in a week. The less you drive, the lower the risk of accidents. Thus, you’ll likely see lower rates.
Many people across the country feel the financial impact of the coronavirus on a daily basis. If you require financial assistance, certain businesses are putting a stop on loan payments. (Though you should still inquire about whether interest accrues during this time.) If you continue to require your car, you may feel frustrated. You’re on the road less so surely you should be paying less. Right?
The answer to this is actually yes! Remember that distance traveled affects your insurance rates. Call your provider and let them know that you have significantly reduced your travel. Log how many miles you are currently driving. If you are only going out to the store for essential items, you will probably see a drastic difference in commute.
And if your insurance company will not adjust your rate, consider shopping for another provider. Many companies will seek to outbid their competition. Let your current provider know that you are looking into changing agencies when your policy is up. You may find that they rise to the challenge.