Insurance Discounts During COVID-19

Car wearing mask
Folks are driving less and some insurers are offering discounts a result. Check to see if any apply to you.

The COVID-19 pandemic has resulted in almost every insurance company offering some kind of rebate or discount on their services. Mostly, these rebates were automatic. You either got a check in the mail, or had a discount applied to upcoming months, but if you didn’t see any kind of reduction, be sure to contact your insurer. Here’s a sampling of what discounts were provided this year:

  • AAA - refunded 20 percent of premiums from March 16 through May 15, 2020. The company also provided complimentary roadside assistance for medical personnel and first responders.

  • Allstate - customers should’ve received a 15% rebate of their April and May insurance premiums, during the most impactful months of the crisis. The company also provided complimentary identity theft protection. Allstate customers could’ve taken advantage of delayed payments for up to 60 days with no penalty for home, auto, and powersports insurance policies. People who have to use their personal vehicles for commercial purposes, such as food delivery, medicine, and other goods will have automatic extended coverage for the duration of the time that their state is under an emergency order.

  • American Family - is offering insurance premium relief that includes a 10 percent refund of premiums for policies active between July and December 2020.

  • Amica - gave its customers a 10 percent refund of premiums over a four-month period, starting in July 2020. Refund amount varies by state.

  • Auto-Owners Insurance - customers saw refunds of up to 15 percent of premiums in April and May 2020.

  • Erie Insurance - gave customers a 30 percent refund of monthly premiums over a two-month period.

  • Farmers Insurance - provided a 25 percent discount for the month of April and a 15 percent cut for May. Farmers also paused cancellations of policies through May 1, 2020 and extended payment due dates to at least May 1, 2020. The company rolled over any remaining balances to the next billing cycle without adding any penalties or late fees.

  • GEICO - provided a 15% kickback not only to its auto customers, but to motorcycle policy holders as well. The company also paused policy cancellations through April 30.

  • The Hartford - credited back 15 percent of premiums between April and May.

  • Liberty Mutual - refunded 15 percent of monthly premiums for two months, extended payment dates, paused policy cancellations, and waived fees for auto and homeowner policy holders through July 15. Policy holders also got coverage for using their personal vehicles for commercial purposes.

  • Metlife - issued a refund of 15 percent of its members’ monthly premiums in both April and May. The company suspended cancellations of policies due to non-payment and extended automatic coverage to people that needed to use their vehicles for commercial purposes.

  • Nationwide - provided a one-time $50 check, which -- depending on how much your premium is -- amounted to about a 15% discount for two months. Customers can ask that their payment due dates be extended, late fees be waived, and policy cancellation be paused by calling Nationwide at 877-669-6877.

  • Progressive - kicked back 20 percent of premiums from April and applied the same credit at the end of May. The company paused policy cancellations, extended billing leniency, and gives special benefits to first responders and policyholders that have to use their personal vehicles for commercial purposes.

  • State Farm - provided some of the biggest discounts, about 25% of premiums from March 20 through May 31, 2020. Customers facing hardship can call their agent to discuss payment options.

  • Travelers - kicked back 15% of premiums in April and May, and paused policy cancellations.

  • USAA - paid it forward by offering existing policyholders a 20% discount on two months of upcoming premiums. Policy cancellations were put on hold through June 17 and USAA customers that need to use their vehicles for commercial purposes were automatically covered through the company.

Fast Car Insurance Rate Quotes

Compare quotes from multiple providers to get a good deal.

Get Quotes
Powered By:

FAQ

Will my insurance rates stay lower permanently?

It’s hard to tell at this point. Though many people have found that they’re able to work remotely indefinitely, the number of miles driven and vehicles on the road will return to almost normal at some point. It’s hard to imagine that insurance companies will let folks slide on payments forever.

Can I cancel my car insurance if I’m not driving?

Generally, no. If you own a vehicle, it’s gotta be insured. If you get caught driving without it, you’ll be on the hook for a ticket AND your insurance premium payments.

Can I cancel part of my car coverage and still drive?

You can do that. Dropping full-coverage in favor of liability-only insurance can save as much as half of your policy. Just make sure you’re comfortable with the fact that you’ll be on the hook to replace your vehicle out of pocket if you wreck it.

What if I can’t afford car insurance right now?

Even if your insurer isn’t on our list and didn’t extend a big refund to you at the beginning of the lockdown, you should call your insurance company or agent to discuss payment plans, options, and relief that may be available to you.

How will remote college and schooling affect the discounts I receive from the “college student away from home” incentive?

That will be up to your insurer. There’s typically some wording in your policy that dictates how far away from home you need to be in order to qualify for the discount, but there’s a chance your carrier will honor the discount either way.

Editor's note and disclaimer: Car Talk is supported by our fans, readers and listeners. When you click on some of the links on our website, we may receive referral compensation. However, you should know that the recommendations we make are based on our independent editorial review and analyses.