Auto insurers have been adjusting rates after the coronavirus pandemic changed daily driving habits.
Erie, Progressive, and State Farm customers in several states could see rates lower by as much as 13% when they renew their policies.
However, some customers with Nationwide (specifically its Midwestern-focused Crestbrook Insurance) and Allstate’s Encompass brand could see rates rise when they renew.
While rates change constantly, major re-adjustments to pricing during the coronavirus pandemic make this a good time to shop around, compare other car insurance quotes, and save.
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With stay-at-home orders taking place across the country during the coronavirus pandemic, many Americans effectively stopped driving. It’s meant big changes for the auto insurance industry, with fewer accidents and fewer claims.
Many insurers gave out rebates to customers in the form of lower future premiums, or by check. An increase in remote work could eliminate the commute completely, and with the unemployment rate still at 13%, many people’s lives and incomes remain at a standstill. Some customers have started to wonder if cancelling car insurance all together was the right move.
With many states now starting to reopen businesses and workplaces, insurers have started to look for a more permanent way to deal with the longer-term changes of the coronavirus.
Some insures are anticipating a need for higher rates as the roads crowd again. With air traffic at a standstill due to social distancing measures and low gas prices, travel by car could be more popular this summer. And, when offices do re-open, some people who previously relied on public transportation might turn to their cars for space.
Some of the nation’s biggest insurers — Allstate, State Farm, Progressive, Erie, and Nationwide — are changing rates to adjust for what’s to come as people start to move around again.
When insurance companies want to change rates, they do so with rate change filings through state regulatory agencies. According to S&P Global data, the following five insurers have been approved for 42 rate changes across 23 states.
State Farm, Erie, and Progressive are lowering rates
State Farm has been putting in quite a few requests to state regulators to decrease its auto insurance prices, especially for auto and home combination policies. Customers with these policies in Illinois, Georgia, Alabama, and Oregon could see rates lower between 12.4% and 13.7%.
Erie Insurance, a company which primarily serves the Midwest and northeast, is also looking at reducing rates in several states. In Tennessee, Wisconsin, Illinois, Indiana, and Pennsylvania, car insurance costs are expected to drop between 4.7% and 6%.
In Illinois, some Progressive customers renewing their policies could see rates lower by 9.6%. Similarly, Progressive has filed to lower rates by 7.2% in Indiana and 4.4% for some New Hampshire customers.
Nationwide and Allstate are raising rates in some states
Three insurers are on the …read more
Source:: Business Insider