Did your car insurance premium drop recently?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
Topic Author
softmax
Posts: 222
Joined: Tue Feb 04, 2020 1:27 am

Did your car insurance premium drop recently?

Post by softmax »

I’m about to renew my auto insurance for the coming 6 months.

I paid $507 last cycle but this time the bill is almost the same: $492.

I bundled my renter’s insurance a month ago so I think the “discount” is mainly a consequence of that. I thought since people drive much less these days, car insurance should have gone down. I might be wrong so I’m interested to see people’s recent data points.
7eight9
Posts: 1840
Joined: Fri May 17, 2019 7:11 pm

Re: Did your car insurance premium drop recently?

Post by 7eight9 »

Geico rebated us 15% of our premium earlier this year.

COVID-19: GEICO is Here to Help --- https://www.geico.com/about/coronavirus/
I guess it all could be much worse. | They could be warming up my hearse.
jebmke
Posts: 12571
Joined: Thu Apr 05, 2007 2:44 pm
Location: Delmarva Peninsula

Re: Did your car insurance premium drop recently?

Post by jebmke »

I have gotten a couple of credits from my auto insurer. I think this is pretty widespread.
When you discover that you are riding a dead horse, the best strategy is to dismount.
Grasshopper
Posts: 1091
Joined: Sat Oct 09, 2010 3:52 pm

Re: Did your car insurance premium drop recently?

Post by Grasshopper »

Progressive didn't offer any help, Geico offered 15% for this 6 months. We did get $23 from Progressive this summer. So Geico it is. I shop every 6 months.
runner3081
Posts: 4039
Joined: Mon Aug 22, 2016 3:22 pm

Re: Did your car insurance premium drop recently?

Post by runner3081 »

We received something like a $12 check. Without a doubt, they will raise rates next year and get that, and a lot more back, haha.
sycamore
Posts: 1983
Joined: Tue May 08, 2018 12:06 pm

Re: Did your car insurance premium drop recently?

Post by sycamore »

Another data point: we got a small-ish premium (10%?) refund from Amica.
Topic Author
softmax
Posts: 222
Joined: Tue Feb 04, 2020 1:27 am

Re: Did your car insurance premium drop recently?

Post by softmax »

Thanks for the data points.
Progressive did offer $34 refund early this year.
I thought they’ll decrease the rate by $50 or something this time because they have far less claims these days.
I guess I’ll shop around just to be sure.
anoop
Posts: 2166
Joined: Tue Mar 04, 2014 1:33 am

Re: Did your car insurance premium drop recently?

Post by anoop »

I have gotten 3 rebate checks so far due to COVID-19. My policy renewed at more or less the same rate as before.
RudyS
Posts: 2176
Joined: Tue Oct 27, 2015 10:11 am

Re: Did your car insurance premium drop recently?

Post by RudyS »

My renewal came due just when the 15% discount went into effect. Got a 15% reduction on my next 12 months from Geico. BTW, when getting my policy, I asked for the 12 month term instead of the usual 6 months. It's a required option in Massachusetts.
Mudpuppy
Posts: 6711
Joined: Sat Aug 27, 2011 2:26 am
Location: Sunny California

Re: Did your car insurance premium drop recently?

Post by Mudpuppy »

I've been receiving 15% back every month as a rebate, but I'm in California so your mileage may vary in other states. The California Department of Insurance requires the rebates for personal automotive insurance since the shelter-at-home order was first issued: http://www.insurance.ca.gov/01-consumer ... avirus.cfm
adestefan
Posts: 185
Joined: Fri Jan 06, 2017 8:22 pm

Re: Did your car insurance premium drop recently?

Post by adestefan »

I ended up get one month for free from State Farm this summer.
kelvan80
Posts: 246
Joined: Sun Jan 12, 2014 10:06 pm

Re: Did your car insurance premium drop recently?

Post by kelvan80 »

If you are driving less you can call and tell them to adjust your mileage driven annually it may affect your premium.
carolinaman
Posts: 4551
Joined: Wed Dec 28, 2011 9:56 am
Location: North Carolina

Re: Did your car insurance premium drop recently?

Post by carolinaman »

State Farm informed us that our next auto premium (in Dec.) will have an 11% reduction due to lower claims during Covid.
User avatar
VictoriaF
Posts: 19566
Joined: Tue Feb 27, 2007 7:27 am
Location: Black Swan Lake

Re: Did your car insurance premium drop recently?

Post by VictoriaF »

I am getting about $5/month from Amica.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)
mnsportsgeek
Posts: 378
Joined: Mon Jan 19, 2015 1:39 pm

Re: Did your car insurance premium drop recently?

Post by mnsportsgeek »

I wish. My state just passed car insurance “reform” that lets people drop PIP coverage, so if you keep PIP then your premium went up.
User avatar
willthrill81
Posts: 24212
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: Did your car insurance premium drop recently?

Post by willthrill81 »

We got a small refund from Farmers a few months ago, but the premium is still the same.
VictoriaF wrote: Sun Sep 06, 2020 7:37 am I am getting about $5/month from Amica.

Victoria
After hearing Clark Howard rave about Amica, I think I'm going to get a quote from them for auto and home coverage. Have your experiences with them been good? We've been with Farmers for a year, and I'm not very pleased with my interactions with them. I can only imagine what filing a claim would be like.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
talzara
Posts: 1514
Joined: Thu Feb 12, 2009 7:40 pm

Re: Did your car insurance premium drop recently?

Post by talzara »

mnsportsgeek wrote: Sun Sep 06, 2020 8:32 am I wish. My state just passed car insurance “reform” that lets people drop PIP coverage, so if you keep PIP then your premium went up.
PIP pays much higher reimbursements than health insurance for the same care. Making PIP optional will have the effect of cutting reimbursements, but it does not require the lawmakers to pass a law cutting reimbursements.

When people see that PIP costs much more than using health insurance, they will opt out of PIP. This will drive PIP into an insurance death spiral, and the premium will go up.

Michigan was the only state with mandatory unlimited PIP. It's just catching up with the other no-fault states, which reformed their insurance laws long ago. Massachusetts limits PIP to $2k if you have health insurance, and serious injuries are covered by health insurance. New Jersey has $250k of PIP, but there is a health insurance opt-out.
Tdubs
Posts: 1180
Joined: Tue Apr 24, 2018 7:50 pm

Re: Did your car insurance premium drop recently?

Post by Tdubs »

Had a reduction in the summer due to Covid, but then with my renewal in September they jacked my rates 20 percent, even after our policy dropped off our only point. Really surprised they thought they could do that. I switched, of course.
User avatar
wander
Posts: 3650
Joined: Sat Oct 04, 2008 9:10 am

Re: Did your car insurance premium drop recently?

Post by wander »

No, my insurance premium is exactly the same as six months ago, although I have been driving less than 10% my pre-COVID norm.
User avatar
CardinalRule
Posts: 637
Joined: Sun Jan 15, 2017 11:01 am
Location: United States

Re: Did your car insurance premium drop recently?

Post by CardinalRule »

Our State Farm premium for one of our two vehicles the period August 29, 2020 to February 28, 2021 was $369.12, but that was reduced by $47.51 for a COVID-19 "dividend."
  • GOOD NEIGHBOR RELIEF PROGRAM FOR STATE FARM CUSTOMERS IMPACTED BY COVID-19: On this bill you'll see a dividend in the form of a policy credit. This credit of $ 47.51 is reflected in your total amount due and is for the time period of March 20 through May 31. State Farm is providing this credit to auto insurance customers, since most of us were at home and driving less, resulting in fewer accidents.
Supposedly we are getting discounts aggregating to $358 for multiple line, multicar, vehicle safety, and accident free, but I've never been sure how to really validate those amounts.
bob60014
Posts: 1879
Joined: Mon Jul 31, 2017 8:59 pm
Location: The Land Beyond ORD

Re: Did your car insurance premium drop recently?

Post by bob60014 »

Just renewed w/Geico and received the 15% discount.
User avatar
wander
Posts: 3650
Joined: Sat Oct 04, 2008 9:10 am

Re: Did your car insurance premium drop recently?

Post by wander »

COVID-19: GEICO is Here to Help
If you are GEICO customers, here is the link about 15% credit.
Mudpuppy
Posts: 6711
Joined: Sat Aug 27, 2011 2:26 am
Location: Sunny California

Re: Did your car insurance premium drop recently?

Post by Mudpuppy »

Tdubs wrote: Sun Sep 06, 2020 10:49 am Had a reduction in the summer due to Covid, but then with my renewal in September they jacked my rates 20 percent, even after our policy dropped off our only point. Really surprised they thought they could do that. I switched, of course.
Sounds like it's time to comparison shop and find a new insurer.
JimmyC
Posts: 17
Joined: Sun Jul 16, 2017 11:51 am

Re: Did your car insurance premium drop recently?

Post by JimmyC »

Grasshopper wrote: Sat Sep 05, 2020 6:11 pm Progressive didn't offer any help, Geico offered 15% for this 6 months. We did get $23 from Progressive this summer. So Geico it is. I shop every 6 months.
Progressive actually gave %15 premium back as well. I think Geico initially offered it for the whole year sooner but both companies have returned the same percentage to customers year to date.

Most OIC offices worth a damn have contacted insurance companies to tell them this is expected. Once a company has to do it in a bunch of states (or even just one if it is California), they are likely to decide to do it in all of them.
Tdubs
Posts: 1180
Joined: Tue Apr 24, 2018 7:50 pm

Re: Did your car insurance premium drop recently?

Post by Tdubs »

Mudpuppy wrote: Sun Sep 06, 2020 11:48 am
Tdubs wrote: Sun Sep 06, 2020 10:49 am Had a reduction in the summer due to Covid, but then with my renewal in September they jacked my rates 20 percent, even after our policy dropped off our only point. Really surprised they thought they could do that. I switched, of course.
Sounds like it's time to comparison shop and find a new insurer.
Yeah, I saved a ton
Bcdkgf
Posts: 49
Joined: Sat Aug 01, 2020 9:43 am

Re: Did your car insurance premium drop recently?

Post by Bcdkgf »

We have gotten three refunds from Amica this year. About $60. Since we are now retired and both of us will be on Medicare with a Medigap G policy in October, should we drop our Medical Payments Coverage of $100,000?
Women and men plan, the Gods laugh.
Drovor
Posts: 182
Joined: Sun Oct 25, 2015 9:50 am

Re: Did your car insurance premium drop recently?

Post by Drovor »

kelvan80 wrote: Sun Sep 06, 2020 12:22 am If you are driving less you can call and tell them to adjust your mileage driven annually it may affect your premium.
We did this with Geico and saving about $10 a month.
squirm
Posts: 3261
Joined: Sat Mar 19, 2011 11:53 am

Re: Did your car insurance premium drop recently?

Post by squirm »

people are working from home now. our driving went from 40k/yr to 20k/yr. insurance is slowly adjusting to things like that.
DiamondplateDave
Posts: 161
Joined: Sat Jun 06, 2015 10:23 pm

Re: Did your car insurance premium drop recently?

Post by DiamondplateDave »

I got a check for $15 in the mail from my insurance company. Now, anybody that knows me would tell you I can find something to complain about in any situation-"I won $100 million in the lottery, and they took half for taxes!"- but really, finding an unexpected letter from my car/homeowner's insurance was not a relaxing experience. To open it up and find out they spent money to print a letter and a check, plus postage, for $15, and that now I had to go to the bank during the pandemic and stand in line to deposit it? Feh! Why couldn't they give me a $15 credit on my next bill and send me an email, which they have and use? :confused
And when I complained to the bank teller, she told me I could deposit it using the app. Now, the last I knew, you had to sign up for something called "billpay" and pay 4 or more bills with it every month for this privilege. I have my account debited for most of my bills and it works fine. She said that was no longer the case.
So, I actually received another check, from a relative. I downloaded the app, set it up, and tried to deposit the check. It was over the maximum amount allowed :oops: .
Topic Author
softmax
Posts: 222
Joined: Tue Feb 04, 2020 1:27 am

Re: Did your car insurance premium drop recently?

Post by softmax »

I just quoted with Geico and after the 15% discount the difference is negligible :( I used to be with Geico until they significantly increased my premium.

I noticed that I have $500/$500 deductibles for my 2013 VW CC which costs $50 more per 6 months compared to $1000/$1000.

Is it worth raising the deductibles? I've seen bogleheads saying that $1000 is the sweet spot. I'm in a rainy area where I saw several accidents on my way to or from work every week (before WFH), so I wouldn't say the risk is super low. Simple math tells me that I need to be accident-free for at least 5 years (5 * 2 * 50 = $500) to justify the deductible increase.
User avatar
GerryL
Posts: 3100
Joined: Fri Sep 20, 2013 11:40 pm

Re: Did your car insurance premium drop recently?

Post by GerryL »

I pay my USAA auto insurance twice a year. They are providing COVID-19 discounts, so I keep getting emails notifying me that my account has been credited for rather tiny amounts.

I don't drive that much even in non-pandemic years, usually logging ~7k miles on my car annually. And in retirement, miles added from road trips are usually balanced out by non-use due to weeks-long trips involving long-distance flights. In June 2019, just after returning from a trip to Britain, I hopped in my car to go out for groceries, and as I pulled into my driveway I saw my odometer (on my then 9-year-old car) hit 50,000. The other day, more than a year later, while out on a grocery trip, I noticed that I am just a little over 52,500. Yeah, I deserve a rebate.
Topic Author
softmax
Posts: 222
Joined: Tue Feb 04, 2020 1:27 am

Re: Did your car insurance premium drop recently?

Post by softmax »

DiamondplateDave wrote: Sun Sep 06, 2020 3:04 pm I got a check for $15 in the mail from my insurance company. Now, anybody that knows me would tell you I can find something to complain about in any situation-"I won $100 million in the lottery, and they took half for taxes!"- but really, finding an unexpected letter from my car/homeowner's insurance was not a relaxing experience. To open it up and find out they spent money to print a letter and a check, plus postage, for $15, and that now I had to go to the bank during the pandemic and stand in line to deposit it? Feh! Why couldn't they give me a $15 credit on my next bill and send me an email, which they have and use? :confused
And when I complained to the bank teller, she told me I could deposit it using the app. Now, the last I knew, you had to sign up for something called "billpay" and pay 4 or more bills with it every month for this privilege. I have my account debited for most of my bills and it works fine. She said that was no longer the case.
So, I actually received another check, from a relative. I downloaded the app, set it up, and tried to deposit the check. It was over the maximum amount allowed :oops: .
Sorry to hear that. I always use the app to deposit the checks (I thought it's a basic function that every bank offers, but apparently it's not). I honestly don't know how to deposit a check physically :oops: And yeah, app deposit is not meant to deposit large checks. I find it convenient to deposit small refunds.

I'm also annoyed by the fact that insurance companies refund through checks. It seems to me that they expect only a portion of people to deposit the checks so that they can save a few bucks.
Topic Author
softmax
Posts: 222
Joined: Tue Feb 04, 2020 1:27 am

Re: Did your car insurance premium drop recently?

Post by softmax »

GerryL wrote: Sun Sep 06, 2020 3:16 pm I pay my USAA auto insurance twice a year. They are providing COVID-19 discounts, so I keep getting emails notifying me that my account has been credited for rather tiny amounts.

I don't drive that much even in non-pandemic years, usually logging ~7k miles on my car annually. And in retirement, miles added from road trips are usually balanced out by non-use due to weeks-long trips involving long-distance flights. In June 2019, just after returning from a trip to Britain, I hopped in my car to go out for groceries, and as I pulled into my driveway I saw my odometer (on my then 9-year-old car) hit 50,000. The other day, more than a year later, while out on a grocery trip, I noticed that I am just a little over 52,500. Yeah, I deserve a rebate.
When you quote with these companies they usually ask you how many miles you drive manually. I never understood how the number impacts the premium and how they track the number. I also don't drive a lot and I'm more than happy to show my odometry to them if that helps decrease my premium.
Mudpuppy
Posts: 6711
Joined: Sat Aug 27, 2011 2:26 am
Location: Sunny California

Re: Did your car insurance premium drop recently?

Post by Mudpuppy »

softmax wrote: Sun Sep 06, 2020 3:18 pm I'm also annoyed by the fact that insurance companies refund through checks. It seems to me that they expect only a portion of people to deposit the checks so that they can save a few bucks.
I don't know if this was mandated by the California Department of Insurance or not, but my refund goes by the same method I use to pay the bill. Since I have the bill on monthly auto-debit from my everyday checking account, this means the credit is auto-deposited into that checking account every month.
talzara
Posts: 1514
Joined: Thu Feb 12, 2009 7:40 pm

Re: Did your car insurance premium drop recently?

Post by talzara »

softmax wrote: Sun Sep 06, 2020 3:22 pm
GerryL wrote: Sun Sep 06, 2020 3:16 pm In June 2019, just after returning from a trip to Britain, I hopped in my car to go out for groceries, and as I pulled into my driveway I saw my odometer (on my then 9-year-old car) hit 50,000. The other day, more than a year later, while out on a grocery trip, I noticed that I am just a little over 52,500. Yeah, I deserve a rebate.
When you quote with these companies they usually ask you how many miles you drive manually. I never understood how the number impacts the premium and how they track the number. I also don't drive a lot and I'm more than happy to show my odometry to them if that helps decrease my premium.
Traditional insurance policies give very small discounts for low-mileage cars. Typically, someone who drives 1 mile a year will pay 80% of the premium at 12,000 miles a year.

Much larger discounts are available with Pay Per Mile (PPM) insurance. Someone who drives 1 mile a year will pay 10-50% of the premium at 12,000 miles a year. However, the discounts are only available if you allow the insurer to track your driving. Odometer readings are not good enough because of the risk of odometer fraud.

The largest PPM insurers are Metromile and Allstate Milewise. Metromile is only available in a few states, and Allstate Milewise is only available in about half the states.
User avatar
VictoriaF
Posts: 19566
Joined: Tue Feb 27, 2007 7:27 am
Location: Black Swan Lake

Re: Did your car insurance premium drop recently?

Post by VictoriaF »

willthrill81 wrote: Sun Sep 06, 2020 10:14 am We got a small refund from Farmers a few months ago, but the premium is still the same.
VictoriaF wrote: Sun Sep 06, 2020 7:37 am I am getting about $5/month from Amica.

Victoria
After hearing Clark Howard rave about Amica, I think I'm going to get a quote from them for auto and home coverage. Have your experiences with them been good? We've been with Farmers for a year, and I'm not very pleased with my interactions with them. I can only imagine what filing a claim would be like.
I did not have any problems with them. But I also did not have any accidents or fender-benders to test their responsiveness. About 15 years ago, when I first moved to this area and started using Amica, I had small dents in my windshield from little rocks bouncing from other vehicles. Amica sent me to their approved shop, which has sealed the dents. This was free of charge for me.

Victoria
WINNER of the 2015 Boglehead Contest. | Every joke has a bit of a joke. ... The rest is the truth. (Marat F)
mnsportsgeek
Posts: 378
Joined: Mon Jan 19, 2015 1:39 pm

Re: Did your car insurance premium drop recently?

Post by mnsportsgeek »

talzara wrote: Sun Sep 06, 2020 10:40 am
mnsportsgeek wrote: Sun Sep 06, 2020 8:32 am I wish. My state just passed car insurance “reform” that lets people drop PIP coverage, so if you keep PIP then your premium went up.
PIP pays much higher reimbursements than health insurance for the same care. Making PIP optional will have the effect of cutting reimbursements, but it does not require the lawmakers to pass a law cutting reimbursements.

When people see that PIP costs much more than using health insurance, they will opt out of PIP. This will drive PIP into an insurance death spiral, and the premium will go up.

Michigan was the only state with mandatory unlimited PIP. It's just catching up with the other no-fault states, which reformed their insurance laws long ago. Massachusetts limits PIP to $2k if you have health insurance, and serious injuries are covered by health insurance. New Jersey has $250k of PIP, but there is a health insurance opt-out.
This list of things that PIP covers that my health insurance will not cover is pretty substantial, so as long as unlimited PIP remains a viable option I’ll be opting for it. If I get a traumatic brain injury (or worse), I don’t want my family to suffer as a result. There are already enough people starting a GoFundMe because they didn’t have unlimited PIP.

So I guess having said that, I’d much rather see the lawmakers cut reimbursements to be more in line with health insurance rather than giving auto insurance provides an easy out when traumatic injuries occur. Either that or require health insurance providers to offer the same level of coverage that PIP provides.
User avatar
abuss368
Posts: 24318
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!
Contact:

Re: Did your car insurance premium drop recently?

Post by abuss368 »

I just received our renewal and the premium is essentially the same. We received a check back for a small amount a couple of months ago.
John C. Bogle: “Simplicity is the master key to financial success."
Post Reply