Breakdown of Personal Auto Insurance Refunds

The COVID-19 pandemic changed the basic everyday life for many people. People were forced to change their work schedules, eating habits, and other regular occurrences. The pandemic also changed how millions of people drove their cars. If you were personally impacted, here’s a look at how you may qualify for a personal auto premium refund.

Lifestyle changes due to the COVID-19 pandemic have caused many people to make changes to their driving habits. Whether it’s due to working from home, financial changes, or other reasons, people are driving their cars less frequently. Travel reductions also impact COVID rates, as research shows that staying more at home can help reduce the COVID infection rate. While assessing the financial impact that the pandemic has caused, think about your insurance policies. Keeping your car parked and off the roads reduces your chances of meeting an accident. Going on an extended hiatus from driving compared to your original monthly mileage impacts your auto insurance premium. Your rates should drastically decrease compared to how they would be if you were driving on a regular basis. Because of this fact, many insurance companies are providing auto insurance refunds to policyholders.

  • Eligibility

    You are eligible for the auto insurance premium refund if you had auto insurance at many state-mandated lockdowns in April and May 2020. Most carriers are offering up to a 20% refund for your monthly premiums because of the drastically reduced driving during the time period. The refund can help those who were emotionally and financially impacted during the time period. Another key feature of this auto insurance premium refund is that multiple types of vehicles are eligible. If you own a van or pickup truck, you are still eligible for the refund. However, there are some potential exclusions. If your primary vehicle is in storage, you may not qualify for the refund. Other possible exclusions include motorhomes, antiques, trailers, motorcycles, and campers.

  • Calculating Your Refund

    Your auto refund premium is calculated by adding your premiums for the two months and then multiplying them by the total refund percentage. You will receive a minimum refund of at least $25. Be aware that any changes made to your policy during the two months may impact your total refund amount. If you added another car to your policy or placed one in storage, the size of your premium refund may increase. Check with your insurer to see if a vehicle assessment fee is included in your refund.

  • Things to Consider

    You don’t have to take any immediate action. Your insurer will calculate your premium refund and send it to you. Your refund should be mailed to the address listed on your auto insurance policy. Check your mailbox in a few weeks.

Consult with Duane Weber Insurance

The COVID-19 pandemic altered people’s lives forever. Receiving a premium refund is one way that insurers can give back during this difficult time. If you have any questions regarding your refund, contact our team here at Duane Weber Insurance. We are here to assist you and answer your questions.