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Fewer Texans Are Driving: How Will the COVID-19 Crisis Impact Car Insurance Rates?

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With the COVID-19 pandemic in full effect, almost every state in the nation has issued variations on the stay-at-home order, meaning fewer people are out and about.

Many wonder what fewer cars on the roads will mean for car insurance rates in Texas? Learn about the effects of COVID-19 on Texas car insurance premiums and what it may mean for you when we’re all back on the roads once more.

Texas, Coronavirus, and Car Insurance Rates

The impact on Texas from the coronavirus can’t be understated. The economy is suffering in a historic way, and tens of thousands of people have fallen ill through no fault of their own. The natural result of this, even without stay-at-home orders, is that fewer people are going out. With fewer cars on the roads, that also means fewer car accidents.

A huge factor in car insurance rates is the prevalence of accidents on the roads. Fewer accidents mean that there’s less risk to insurance companies, as Texas Watch points out. Because of this, a number of companies are offering rate relief to customers, but it’s important to understand that this relief may not be automatic. You may need to take action to get your lower rates.

Payback Plans and Lower Car Insurance Premiums

Insurance agent helping to lower car insurance ratesMost of the major car insurance companies in the nation, including Allstate, American Family, Chubb, Farmers, GEICO, Hartford, Liberty Mutual, Nationwide, Progressive, State Farm, Travelers, and USAA, among others, are offering credits and payback plans to their customers. These plans take advantage of the reduced risk to provide relief to customers at a time when they might need it most.

Credits can range wildly among insurers. We are seeing credits and paybacks of anywhere from a flat fee of $50 to a rate credit ranging from 15% to 25%, depending on the individual company. It’s a good idea to contact your insurer to find out if they are crediting your account and what you need to do to take advantage of any credit they may be offering.

How to Reduce Car Insurance Rates

It can’t be understated: Never just assume that your account will be credited. Get in touch with your insurance carrier and ask them to reconsider your rate due to your reduced mileage. You can also reduce your coverage temporarily to the state minimum if you’re not driving at all. Another option is to increase your deductible for the time being. This will often lower your overall rate. It’s also never a bad idea to shop around for the best rates. A few dollars a month can be a big relief in these tough times.

Contact the State

Texas Watch has a fast and easy form you can fill out online that will tell the Texas Department of Insurance that all rates should be reviewed across the state. The department can then order reductions where warranted due to the effects of COVID-19 in Texas. This can help you and your family pay the bills in a time of crisis. As fellow Texans, we encourage you to fill out the form today.