You might have already got the third stimulus checks of up to $1,400, as well as the stimulus payment from the earlier two rounds, but you may still get one more stimulus related check. This coronavirus stimulus check might come from your auto insurer as a rebate or discount, provided you are able to convince them that you’re driving less.
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Many insurers already have offered discounts and rebates to users following the surge in their profits last year due to the lockdown. According to the American Property Casualty Insurance Association, insurers gave over $14 billion in refunds and credits to policyholders last year.
The government, however, continues to push these insurers to offer more relief to the policyholders. On the other hand, some insurers have already revealed their intention to raise premiums. Still, you may get some cash from your insurer, but you may have to ask for it.
The U.S. Public Interest Research Group Education Fund found that irrespective of the profits made by the auto insurers, “the majority of insurers didn’t give back more than half of one month’s premium.” Also, some insurers gave no refunds or discount on premiums unless the policyholder asked for it.
This means that to get the cash, you will have to contact your insurance agent. And, with the government pressurizing insurers, it is possible that your insurer might revise your premium, provided you are driving less than normal.
To get the rebate, you should provide the insurer with all relevant data, such as the distance you are not travelling while working from home.
In case your insurer doesn’t agree to give back cash or a rebate, there are a few more ways that can help you to cut your insurance premium.
You can drop policy extras that you may not need for now. For example, you can drop the coverage that pays for rental care if your car is at the repair shop. However, before dropping these extras, you must ensure that you meet the state’s minimum liability coverage and you still have sufficient accident protection.
Another way to reduce your premium liability is to change your insurer. If your insurer isn’t giving you a pandemic discount, then you might want to switch to an insurer that is giving a rebate or reduced premiums for the pandemic.
There is one more way to reduce your insurance bill, but you should go for this only in an extreme case. If you have completely stopped driving, then you may put your insurance on hold. If you are suspending your insurance, you need to take better care of your car as you won’t have protection from non-driving related losses, such as theft. A better option would be to at least buy comprehensive coverage (also known as storage coverage) in case of theft, fire, vandalism or any other damage that could happen while in storage.
