Dallas Auto Insurance Prices Are Dropping With Less Drivers On The Road
Due to the global pandemic COVID-19, millions of Americans are on lockdown or “safer at home” orders and there are far fewer drivers on the roads. This has many auto insurance companies lowering rates or giving money back to help people who might be struggling financially during the crisis.
A local Dallas news station released the following information about major car insurance companies that are doing just that in the area:
- Allstate announced it will return 15% of premiums paid by customers for April and May.
- AAA is offering a 20% refund on current policies.
- Geico is offering a 15% credit on customers’ next policy term.
- Progressive is offering customers a 20% premium credit.
- Liberty Mutual Insurance followed suit Tuesday by stating it will offer its customers a 15% refund on two months of auto insurance premiums.
- State Farm is returning $2 billion dividends to its auto insurance customers.
- American Family Insurance said it will provide customers with a one-time payment of $50 for each insured vehicle.
Why is auto insurance In Dallas Dropping Around The Country?
One major factor in monthly rates is the traffic around where you live. Increased traffic and congestion leads to more accidents and higher insurance claims. With lower risk and lower costs, many insurance companies see this as the right thing to do and leaped at the chance to give back to their communities. Insurance Companies have also stated their willingness to work with families having trouble paying premiums due to the shutdown and its after-effects.
Besides traffic changes, rates are also based on an estimate of annual mileage. Most drivers are experiencing far less mileage in 2020 than anyone could have predicted. Some people are no longer commuting to work and there is less travel for leisure activities and holidays as well.
More Ways To Reduce Your Auto Insurance Rates During The Pandemic
Canceling your insurance, even if you aren’t driving, isn’t a good idea. Gaps in insurance coverage can be bad for your insurance history. If you know you won’t be using one or more of your family cars, contact your insurance company about lowering your rate or placing the unused car in storage.
You can also seek help from your insurance company. Give them a call and ask about extended grace periods, waiving late fees, or eliminating penalties for missed payments. If things are tough, ask about arranging a payment plan. You can also ask about switching to a higher deductible plan for the time being.
Check to see if there are any discounts you’ve been missing out on or now qualify for to help lower your monthly premiums. Know that discounts aren’t always automatic and you might need to ask for them.
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