Not driving as much? Should that impact insurance rates?

Empty roads saving insurance companies millions
Posted at 2:53 PM, Apr 01, 2020
and last updated 2020-04-20 11:58:31-04

COLORADO SPRINGS — Obeying Colorado's stay at home orders means you probably aren't driving as much. Less traffic is saving insurance companies a ton of money because there are fewer crash claims and consumer advocates say it's time for those companies to help you save money too.

The Coronavirus has cleared roads across the nation. our neighborhoods are now packed with parked cars. With so many people staying home that means fewer accidents, fewer crash claims and more savings for insurance companies. When consumer advocates look at those same streets they see a social injustice, drivers forced by the state to buy auto insurance, and then forced to stay home.

The Consumer Federation of America wants state insurance commissioners and insurance companies to give consumers relief.

"its time for the insurance companies to step up and do the right thing which is to give a break for this month while we're not driving," said Doug Heller of the Consumer Federation of America.

Geico paused policy cancellations and expirations through April 30th. Allstate did the same. It's allowing payments to be delayed up to two months, but the amount due is still the same.

The Consumer Federation of America and the Center for Economic Justice have drafted a joint letter that was sent to state insurance commissioners.

The Consumer Federation of America says if accidents are down 25-percent in a state like California, insurance companies would save about $100 million per week.

"Allow consumers to tell their insurance companies how many fewer miles they are driving these days and they can calculate what is the monthly savings and then offset our premiums so instead of paying 150 a month , maybe the premium will go down to 100 a month," said Heller.

It's critical that you don't try to go on without any coverage. You may need to drive your car to the grocery store or even to the hospital. Your car can still be stolen, or damaged and you'll want insurance coverage to help you pay for the damage or replace your vehicle.

The best advice is to call your insurance company and ask if you can be re-rated, especially if your mileage is down. Right now, the experts say getting new quotes from several companies could give you even more options to save money. Keep in mind, not paying your insurance premiums could make your future policies much more expensive.