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Covid-19 is a good reason to shop for car insurance – even if you already have it


When it comes to car insurance, it pays never to get too comfortable with your current insurer – because there may be a much better deal out there for you. Consider the biggest news in car insurance during the 2020 Covid-19 pandemic, which is that most personal auto insurance companies have refunded between 10% and 25% in premiums to customers. It has been a pleasant surprise for many customers, who have already been dealing with a shuttered economy and record job losses.

The refunds were motivated by the fact that, with drivers mostly shut in their houses under stay-at-home orders, Americans drove a lot less. As a result the number of claims filed for accidents was greatly reduced, and fewer claims means larger profits for insurance companies. The companies took the opportunity to share some of the wealth with the people who put it there – customers. They were also encouraged – and in some cases mandated – to do so by a number of states, in light of the fact that they shared in the multi-trillion dollar government stimulus packages.

One might think that this “kindhearted” act by insurers would have engendered greater loyalty in their customers. However, it appears to have had the opposite effect, prompting customers to shop around for cheaper alternatives. A recent survey by J.D. Power found that 50% of car insurance customers said they were more likely to shop for new insurance, switch, and/or cancel their policies.

It seems clear that anything that shakes up customers’ usual complacency and causes them to think about what they are paying for car insurance can be a good reason for shopping around. And as we explain on , it’s easy to get quotes from multiple insurers in a short period of time. In fact, we emphasize that if you care about your money, you absolutely MUST get multiple quotes before choosing a carrier. This is true whether you need to initiate car insurance or if you are already insured but seeking better pricing.

Of course there is a point of diminishing returns on getting quotes, so it’s probably not worth checking with every company. But if you want to make a change, the minor effort involved in getting at least three quotes can potentially yield meaningful savings at any time. You don’t need a pandemic as an excuse to go out and test the waters. You could even set yourself a calendar reminder every few months to get quotes and see if anyone can significantly beat your current rate for comparable coverage.

Don’t let a misguided sense of emotional connection to an insurance provider affect your business judgement. Remember, insurers often have no qualms about raising your rates after a single accident, so don’t feel that you owe them loyalty. You can be sure they don’t feel that way about you. It’s a competitive market, and that’s one of the few things that you as a consumer can use to your advantage.

So why not use this article as a call to action. Go out and see if you can get a much better deal. You’ll never know until you test the waters. Finding out if you are in line for major car insurance savings is just a few quotes away.